Dhoot Transmission IPO receives a Selective Apply recommendation from Chanakya.
The company has a strong business position with 41% market share in the 2W and 3W wiring-harness segment.
Its nearly 70% share in electric 2W and 3W wiring harnesses provides strong EV-growth exposure.
FY26 total income grew approximately 31%, while PAT increased around 12%.
The improved debt-equity ratio of 0.35 indicates a healthier balance sheet.
However, the IPO appears expensive at approximately 44.9 times post-issue EPS at Rs. 871.
Declining PAT and EBITDA margins require careful monitoring.
More than half of the Rs. 3,066.89 crore issue is an OFS and will not provide fresh capital to the company.
The current GMP of Rs. 260 indicates strong potential listing gains, but it can change rapidly.
Listing-focused investors may apply only if GMP remains firm and subscription demand strengthens.
Strong QIB participation during 10–12 August would improve confidence in the issue.
Long-term investors should apply selectively because business quality is strong but valuation comfort is limited.
Final Guidance: Selective Apply for listing gains; avoid aggressive bidding without strong subscription confirmation.
Study all the aspects of this IPO
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