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Mon, 28 Sept 2026
09:55:35 am
Mon, 28 Sept 2026
09:55:35 am
Rudransh Sangwan
Published at: September 28, 2026, 5:59 AM
Synopsis
Dhoot Transmission shares fall for a fourth session as Kotak cites valuation risks. The brokerage sees limited upside despite EV growth prospects.
Dhoot Transmission shares opened lower on Monday, September 28, and remained in the red despite recovering some of their early losses. The stock was headed for its fourth consecutive session of losses.
Kotak Institutional Equities has initiated coverage on Dhoot Transmission with a "Sell" rating and a price target of Rs 1,400 per share. Kotak's target implies a further downside of 10% from the stock's closing level on Friday.
The brokerage said Dhoot Transmission is the market leader in India's two wheeler and three wheeler wiring harness segment. It is also moving beyond wiring harnesses into products such as battery packs, sensors, controllers and switches.
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Kotak's view is based on the gap between Dhoot Transmission's growth prospects and its current valuation. The brokerage believes the stock already reflects much of the expected growth, which limits the scope for further upside at the current valuation.
Dhoot Transmission is expanding from a single product wiring harness business into a wider automotive electrical and electronics business. The company now has exposure to several vehicle components, including battery packs, sensors, controllers and switches.
The shift gives Dhoot Transmission exposure to the growing use of electrical and electronic components in vehicles. However, Kotak expects wiring harnesses to remain the main contributor to revenue as the company expands its newer product categories.
Dhoot Transmission had a 41% market share in India's domestic two wheeler and three wheeler wiring harness market in FY26. The company also has a market share of around 70% among suppliers of wiring harnesses for electric two wheelers and three wheelers.
The company was founded in 1999 and manufactures wiring harnesses, electronic sensors, automotive switches, cords, cables and electric vehicle components. Its products are used across two wheelers, three wheelers, passenger vehicles, commercial vehicles, off highway vehicles and farm equipment.
Dhoot Transmission serves both internal combustion engine and electric vehicle markets. Its manufacturing facilities are spread across India, the UK, Slovakia, Thailand, Japan and South Korea.
Readers tracking the company's earlier public market journey can also look at the Dhoot Transmission IPO opening details and the later Dhoot Transmission IPO subscription update.
The main figures in the brokerage view and the company's market position are:
| Particulars | Details |
|---|---|
| Kotak rating | "Sell" |
| Kotak price target | Rs 1,400 per share |
| Implied downside | 10% |
| Domestic two wheeler and three wheeler wiring harness market share | 41% in FY26 |
| Electric two wheeler and three wheeler wiring harness market share | Around 70% |
| Company founded | 1999 |
The 41% domestic market share shows the importance of wiring harnesses to Dhoot Transmission's existing business. The roughly 70% share in electric two wheeler and three wheeler wiring harnesses also gives the company exposure to electric vehicle component demand.
Dhoot Transmission is expected to benefit from higher electric vehicle penetration, premiumisation and the rising amount of wiring harness content used in vehicles.
Electric vehicles require electrical systems and components across several parts of the vehicle. As electric vehicle adoption increases, Dhoot Transmission's exposure to wiring harnesses and other electric vehicle components could support business expansion.
The company's product range is also becoming wider. Battery packs, sensors, controllers and switches give Dhoot Transmission additional areas of automotive electrical and electronics demand beyond its traditional wiring harness business.
At the same time, the source indicates that wiring harnesses are expected to remain the main contributor to revenue growth. This means the existing wiring harness business remains central even as the company expands into newer components.
The Dhoot Transmission story combines two separate factors for investors to track. The first is the company's operating growth, particularly its position in wiring harnesses and its exposure to electric vehicles. The second is the valuation placed on that expected growth.
Kotak's coverage focuses on the second factor. The brokerage accepts the company's transition towards a wider automotive electrical and electronics business but believes the current valuation already captures these growth prospects.
This creates a situation where business expansion and valuation are both important to the stock's performance. The company has exposure to electric vehicles and increasing electrical content in vehicles, while the brokerage's concern is that these expectations may already be reflected in the share price.
The wider transmission and infrastructure sector has also attracted attention among market participants, although Dhoot Transmission's business is different from power transmission companies. WeloMoney has previously covered transmission sector stock movements, which involve a separate set of industry drivers.
Investors will be able to track several factors as Dhoot Transmission's business develops. These include the company's wiring harness demand, electric vehicle component growth and the pace at which its newer product categories contribute to revenue.
The market share figures will also remain relevant. Dhoot Transmission's 41% share of the domestic two wheeler and three wheeler wiring harness market and around 70% share in electric two wheeler and three wheeler wiring harnesses provide a measure of its position in these segments.
Other factors to watch include:
Kotak's Rs 1,400 price target provides the brokerage's current valuation view. The rating and target are the brokerage's assessment and should be read separately from the company's operating performance.
Dhoot Transmission is an automotive component manufacturer founded in 1999. Its products include wiring harnesses, electronic sensors, automotive switches, cords, cables and electric vehicle components.
The company supplies products for two wheelers, three wheelers, passenger vehicles, commercial vehicles, off highway vehicles and farm equipment. Its operations cover both internal combustion engine and electric vehicle segments, with manufacturing facilities in India, the UK, Slovakia, Thailand, Japan and South Korea.
The next phase of the company's business will depend on how its existing wiring harness operations develop alongside newer automotive electrical and electric vehicle components. Kotak expects wiring harnesses to remain the main revenue contributor while the broader product portfolio supports further expansion.
Dhoot Transmission shares were trading lower on September 28 as the stock headed for its fourth consecutive session of losses. The immediate development was Kotak Institutional Equities initiating coverage with a "Sell" rating and a Rs 1,400 price target.
Kotak Institutional Equities has set a price target of Rs 1,400 per share for Dhoot Transmission. The target implies a 10% downside from the stock's closing level on Friday.
Dhoot Transmission had a 41% share of India's domestic two wheeler and three wheeler wiring harness market in FY26. Its market share among suppliers of wiring harnesses for electric two wheelers and three wheelers was around 70%.
Dhoot Transmission manufactures wiring harnesses, electronic sensors, automotive switches, cords, cables and electric vehicle components. Its products are used in two wheelers, three wheelers, passenger vehicles, commercial vehicles, off highway vehicles and farm equipment.
Kotak believes Dhoot Transmission's current valuation already reflects its expected growth from electric vehicles, premiumisation and higher wiring harness content. The brokerage therefore sees limited scope for further upside at the current valuation.
Dhoot Transmission could benefit from rising electric vehicle penetration, premiumisation and increasing wiring harness content per vehicle. Its wider product range, including battery packs, sensors, controllers and switches, is also expected to support its next phase of expansion.
Financial journalist specializing in market analysis, stock research, and investment trends. Dedicated to providing accurate, timely insights for informed decision-making.
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