Laxmi Dental Beats Revenue Expectations! But US Tariffs & Competition Dent Profits? Motilal Oswal's INR 410 Target Revealed!

Author

Satyam Jha | Whalesbook News Team

Detailed Coverage:

Laxmi Dental Instruments Limited posted revenue that exceeded expectations for the second quarter of fiscal year 2026. However, the company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and Profit After Tax (PAT) came in below forecasts. The profitability was negatively impacted by policy changes related to US tariffs and increased competitive pressure within the Bizdent business segment. Despite these challenges, the company's international lab business continues to show improved traction, driven by a higher off-take of crowns and bridges in new geographical regions. Following these results, Motilal Oswal has reduced its earnings estimates for fiscal years 2026, 2027, and 2028 by 6%, 8%, and 11%, respectively. This revision accounts for the prolonged impact of global policies, a gradual uptick expected in the kidz-e-dental business, and a temporary slowdown anticipated in the Bizdent business. The brokerage firm values Laxmi Dental Instruments Limited at 33 times its projected 12-month forward earnings, establishing a target price (TP) of INR 410.

Impact This analyst report is likely to influence investor sentiment regarding Laxmi Dental Instruments Limited. The revised earnings projections and target price may lead to short-term stock price adjustments as the market digests the new outlook. The identified challenges (tariffs, competition) highlight potential headwinds for the company's near-term financial performance. Rating: 5/10

Difficult Terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. PAT: Profit After Tax. This is the net profit of a company after all expenses and taxes have been deducted. FY26/FY27/FY28: Fiscal Year 2026, 2027, and 2028, representing the financial year periods ending in March of those respective years. US Tariff Related Policy Changes: Modifications in government tax policies that apply to goods imported into or exported from the United States, impacting costs and trade. Bizdent Segment: A specific division or product line within Laxmi Dental Instruments Limited, likely focusing on dental products and services for general business or professional dentistry. Kidz-e-dental Business: A specialized segment of Laxmi Dental Instruments Limited's operations, likely focused on dental products or services designed specifically for children. TP: Target Price. The price level at which an investment analyst or broker predicts a stock will trade within a specific future timeframe. 12M Forward Earnings: The projected earnings per share a company is expected to generate over the next twelve months.