Dhoot Transmission shares tumbled 10% on Monday as Kotak Institutional Equities introduced a sell rating and a ₹1,400 price target, signalling a shift in sentiment for the wiring‑harness leader.
Kotak’s analysis projects a 23% CAGR in revenue and EBITDA over FY26‑29E, with wiring‑harness revenue expected to grow 17% and EV‑component sales to surge 50%. These figures underline the company’s pivot from a single‑product harness manufacturer to a broader automotive electrical and electronics platform.
The company currently commands a 41% share of India’s two‑ and three‑wheeler wiring‑harness market for FY26, and about 70% in the electric two‑ and three‑wheeler segment, positioning it to benefit from rising EV penetration and premiumisation.
Kotak cautions that the existing valuation already incorporates the projected growth, thereby limiting upside potential. The ₹1,400 target represents a 10% downside from the last closing level, aligning with the sell recommendation.
Looking ahead, the next quarterly earnings release will be pivotal. Investors should monitor actual revenue and EBITDA figures, board guidance, and any updates on the company’s expansion into battery packs, sensors, and controllers.