Dhoot Transmission Limited (DTL) is one of India’s leading electrical and electronics (E&E) companies specializing in the design, engineering, manufacturing, and supply of critical wiring harnesses and electrical distribution systems. DTL's core value proposition lies in its turnkey capability to deliver application-specific electrical architectures that integrate advanced sensors, controllers, switches, junction boxes, terminals, connectors, and high-voltage interconnection systems across diverse platforms. Operating an integrated Tier-1 supply model, DTL benefits from extensive backward integration of critical components such as connectors, terminals, cables, and moulded parts. This extensive in-house capability significantly reduces procurement overheads and shields the company's supply chains against external disruptions. DTL’s business model is completely powertrain-agnostic, allowing it to seamlessly serve the full spectrum of automotive powertrain architectures, ranging from conventional internal combustion engines (ICE) to electric vehicles (EV). The company operates across a diversified range of end-markets, extending beyond two-wheelers (2W) and three-wheelers (3W) into commercial vehicles (CVs), off-highway vehicles (OHW), and farming and industrial equipment (such as boilers). Key domestic client relationships include marquee OEMs such as Bajaj Auto Limited (which stands as DTL’s top customer, contributing 31.84% of FY26 revenues), TVS Motor Company Limited (19.62%), Honda Motorcycle & Scooter India Private Limited (10.40%), and Royal Enfield. DTL's top 5 customers accounted for 71.56% of FY26 revenues, while the top 10 customers represented 80.93% of revenues. While domestic sales represent the bulk of its business (90.53% in FY26), DTL maintains a strong international presence, with the United Kingdom contributing 7.06% of operational revenues, alongside exports to other regions including Europe, North America, Southeast Asia (Thailand, South Korea), and Slovakia. On the manufacturing front, DTL operates a highly scalable and geographically distributed industrial network. As of March 31, 2026, the company's footprint comprised 19 manufacturing facilities in India and 3 manufacturing facilities overseas, complemented by 3 engineering and design support centers and 7 warehouses. These facilities are strategically co-located within key domestic and global OEM automotive clusters—spanning Maharashtra, Tamil Nadu, Haryana, and Madhya Pradesh in India, alongside the United Kingdom, Slovakia, and Thailand internationally - enabling rapid localization, shorter lead times, and reduced logistics costs. DTL's annual installed production capacity is substantial, comprising 41.83 million equivalent units across its Indian units (utilizing an average capacity of 74.59% in FY26) and 0.26 million units across its overseas facilities (with a 20.56% average utilization rate in FY26). The combined capacity utilization across all of DTL's operating plants stood at 74.26% in FY26. A major operational highlight is DTL’s advanced research, development, and engineering department, which employed 237 dedicated specialists as of March 31, 2026. The company’s R&D expenditure has grown aggressively to support transition-era technologies, scaling from Rs 2.69 Crore (0.11% of total expenses) in FY24 to Rs 17.30 Crore (0.43% of total expenses) in FY26. This dedicated R&D setup has allowed DTL to develop high-margin, technically complex electronic components on extremely compressed timelines; for example, DTL successfully designed, prototyped, and industrialized a universally compatible automotive USB Type-C fast-charger within a four-month window to help a major 2W OEM comply with India's "One Nation, One Charger" standard. This robust technological readiness positions DTL to capitalize on premiumization and electrification trends, with electric vehicles (EVs) already contributing 24.17% of the company’s total operational revenue in FY26. As per financial performance, Dhoot Transmission Limited has posted total income / net profits of Rs 2,799.32 Cr / Rs 298.75 Cr (FY24), Rs 3,472.24 Cr / Rs 353.89 Cr (FY25) and Rs 4,563.70 Cr / Rs 396.84 Cr (FY26). So as per previous financials data, the company has shown stellar top-line and bottom-line scaling, with total income expanding at a CAGR of 27.68% and net profits growing at a CAGR of 15.25% over the last three fiscals, while total outstanding borrowings increased from Rs 554.90 Crore in FY24 to Rs 841.39 Crore in FY26 to fund its rapid capacity creation and strategic acquisitions like Dhoot Holdings Private Limited. Company has an average EPS of Rs 23.78 and average RoNW of 27.06% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 5.82 as per NAV of Rs 149.74 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 4.65 (or 4.69 when calculated using net worth). If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue, then the asking price is at a Post-Issue P/E of around 59.63, 50.34, and 44.89 respectively. As per RHP, a comparison between listed peers shows that listed industry peers trade at P/E multiples ranging from 43.24x to 74.64x with an industry composite average of 55.31x (where Uno Minda Limited trades at 56.87x and Sona BLW Precision Forgings trades at 74.64x), positioning the company's asking multiple of 44.89x at an attractive discount to the peer composite average despite DTL's superior standalone EBITDA margins of 15.71% in FY26. On BRLM's front, Axis Capital Limited, Jefferies India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Private Limited, SBI Capital Markets Limited, and 360 ONE WAM Limited are associated with this IPO, and Axis Capital Limited has handled 48 IPOs in the last three fiscal years. ( As on 04.08.26 ) As per financials, Dhoot Transmission Limited has shown stellar top-line momentum, superior operational margins, positive cash flows, and a robust backward-integrated Tier-1 operating model, RoNW is 16.55% and the Post-Issue P/E is 59.63, 50.34, and 44.89 respectively as per FY24, FY25, and FY26 earnings. So the issue looks attractively priced. The company is a leading Tier-1 manufacturer of wiring harnesses and electrical distribution systems for the automotive and non-automotive sectors offering products starting from wiring harnesses, battery packs, and electronic sensors to automotive switches, junction boxes, and high-voltage EV interconnection systems. So, we give a SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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