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Dhoot Transmission Shares Drop as Kotak Warns of 10% Fall on Valuation Risks
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CNBC TV18•28-09-2026, 10:10
Dhoot Transmission Shares Drop as Kotak Warns of 10% Fall on Valuation Risks
- •Dhoot Transmission shares fell for the fourth consecutive day after Kotak Institutional Equities initiated coverage with a 'Sell' recommendation.
- •Kotak set a price target of ’1,400 per share, implying a further 10% downside from the previous closing level.
- •Despite being a market leader in two-wheeler and three-wheeler wiring harnesses and expanding into broader automotive electrical components, Kotak believes the current valuation already reflects future growth.
- •The brokerage projects Dhoot Transmission's revenue and EBITDA to grow at a 23% CAGR over FY26-29E, driven by wiring-harness and significant EV component growth.
- •Dhoot Transmission, founded in 1999, manufactures a wide range of automotive electrical components for various vehicle types, serving both ICE and EV segments globally.
Key Questions Answered
Dhoot Transmission shares declined after Kotak Institutional Equities initiated coverage on the stock with a 'Sell' recommendation and a price target of ₹1,400 per share, warning of valuation risks and a potential 10% fall.
Kotak expects Dhoot Transmission's revenue and EBITDA to both grow at a compound annual growth rate (CAGR) of 23% over the period from fiscal year 2026 to 2029, driven by 17% growth in wiring-harness revenue and 50% growth in EV components.
In fiscal year 2026, Dhoot Transmission held a 41% market share in India's domestic two-wheeler and three-wheeler wiring-harness market, and approximately 70% market share in the electric two-wheeler and three-wheeler segment.
