Dhoot Transmission gains 6% to hit 52-wk high; stock up 70% from IPO price

Shares of auto components maker Dhoot Transmission gained nearly 6 per cent in Thursday’s trade to hit a fresh 52-week high, amid broad-based buying across the markets.

The stock opened marginally lower at ₹1,400 but quickly reversed losses to move into positive territory, hitting an intraday high of ₹1,485.

Dhoot Transmission made a strong debut on Dalal Street on August 17, listing at a premium of 38 per cent over its issue price of ₹871. The ₹3,067-crore initial public offering (IPO) was subscribed 74.21 times.

At its current price, the stock has gained 70 per cent from its IPO price.

As of 12:45 PM, Dhoot Transmission shares traded 4 per cent higher at ₹1,462, with 8.5 million shares changing hands. In comparison, the benchmark Nifty 50 was up 145 points, or 0.6 per cent, at 24,224.

The company had a market capitalisation of ₹24,290.08 crore.  ALSO READ: Tempsens Instruments IPO: GMP at 73%; analysts assign 'subscribe' tag  Dhoot Transmission gets 'Buy' from Ambit   Today's buying sentiment was boosted by an Ambit Capital report. The brokerage initiated coverage on Dhoot Transmission with a 'Buy' rating and a target price of ₹1,598, implying an upside of around 14 per cent from the previous close of ₹1,404.

Ambit noted that Dhoot Transmission leads 2/3W wiring harness with 41 per cent share, and ~70 per cent in E-2/3W. Non-wiring harness portfolio of battery packs, sensors, controllers & chargers that posted 49 per cent CAGR in FY23-26 allows Dhoot Transmission to capture widening Electrical and Electronics (E&E) markets.

Ambit said that EVs form 24 per cent of the company's revenue, which could reach 33 per cent by FY29 as E-2W hit inflection point. Higher wiring harness content in E2/3W vs ICE and rising electronics content provide long-term growth visibility. 

The brokerage also sees inorganic potential to tap into the 4W E&E space which can open up large Total Addressable Market (TAM). 

Ambit further said that a structured apprentice recruitment machinery will optimise labour costs. This along with backward integration into connectors, switches & sensors since FY23 sharpens cost edge, enabling market share gains and margin expansion. It expects PAT to grow at 31 per cent CAGR over FY26-29.

Founded in 1999 and headquartered in Aurangabad, Maharashtra, Dhoot Transmission manufactures products, such as wiring harnesses, electronic sensors and controllers, automotive switches, power cords, cables, connectors and terminals.