🚫 Avoid
Listed
Auto Components & Equipments
Dhoot Transmission Limited IPO
₹3,067 Cr · Fresh Issue & OFS · Auto Components & Equipments
Price Band
₹829 – ₹871
GMP (Grey Market)
—
No GMP data yet
Issue Size
₹3,067 Cr
Fresh Issue & OFS
Market Cap
₹17816.14 Cr
At upper band
P/E Ratio
44.9x
P/S: 3.9x
Listing Date
17 Aug 2026
BSE & NSE
IPO Timeline
✓
Opens
10 Aug 2026
✓
Closes
12 Aug 2026
✓
Allotment
13 Aug 2026
✓
Refund
14 Aug 2026
✓
Listing
17 Aug 2026
IPO India Hub: Avoid
Conviction
3/10
The company is priced at 2.25× the auto components sector midpoint (44.9x P/E vs 20x benchmark) with a net profit margin of only 8.7%, well below the 15% threshold needed to justify premium valuation. High OFS (54.3% of issue) combined with stretched valuation and weak margin expansion create material downside risk for retail investors.
Listing Performance
Issue Price
₹871
Allotment price
Listing Price
₹1193.8
+37.06% on listing day
Current Price (CMP)
₹1727.35
+98.3% vs issue
Listed On
17 Aug 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Strong revenue growth trajectory
Revenue has grown at 27.7% CAGR over two years (₹2,799 Cr to ₹4,564 Cr), demonstrating solid market demand and operational scale-up. The company is a significant player in auto components with ₹4.5 Cr annual revenue and established customer relationships.
✓ Strength
Healthy capital efficiency metrics
ROCE of 29.66% and EBITDA margin of 17.15% indicate the company generates strong returns on capital deployed. Debt-to-equity of 0.78x is conservative, providing financial flexibility and reducing refinancing risk.
⚠ Risk
Valuation significantly above sector norms
At 44.9x P/E, the company trades at 2.25× the auto components sector midpoint of 20x (range 15–25x). This 125% premium cannot be justified by an 8.7% net profit margin, which is below the 15% threshold required to support elevated multiples.
⚠ Risk
Weak profit margin expansion despite revenue growth
While revenue CAGR is 27.7%, PAT CAGR is only 15.3%, indicating margin compression. Net profit margin of 8.7% is thin for an auto components company and suggests limited pricing power or rising input costs offsetting volume gains.
₹ Valuation
Premium valuation with margin mismatch
The P/E of 44.9x is 2.25× the sector midpoint, placing the company in the 'Avoid' zone per valuation criteria. At 3.9x P/S, the company is also expensive relative to peers, with no margin justification (NPM 8.7% vs 15% threshold).
👁 Watch
Monitor post-listing margin trajectory
Investors should closely track quarterly EBITDA and net profit margins post-listing. Any further compression below 8.7% NPM would signal operational stress and validate the overvaluation thesis.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Dhoot Transmission Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹4524.96 Cr
Net Profit
₹396.84 Cr
Industry
Auto Components & Equipments
Issue Type
Fresh Issue & OFS
Promoters
BC ASIA INVESTMENTS XV LIMITED AND RAHUL RADHAVALLABH DHOOT
Lead Managers
Axis Capital, Jefferies, Kotak Mahindra Capital, Nomura Financial Advisory, SBI Capital Markets and 360 One WAM
Quick Actions
Frequently Asked Questions
Avoid. The company is priced at 2.25× the auto components sector midpoint (44.9x P/E vs 20x benchmark) with a net profit margin of only 8.7%, well below the 15% threshold needed to justify premium valuation. High OFS (54.3% of issue) combined with stretched valuation and weak margin expansion create material downside risk for retail investors.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
Lot size details will be updated when the DRHP is filed. The price band is ₹829 – ₹871.
The IPO opens on 10 Aug 2026. It closes on 12 Aug 2026. Allotment is expected on 13 Aug 2026. Refunds initiate on 14 Aug 2026. Listing on BSE and NSE is on 17 Aug 2026.
The lead managers for the IPO are Axis Capital, Jefferies, Kotak Mahindra Capital, Nomura Financial Advisory, SBI Capital Markets and 360 One WAM. Check the SEBI filing for the registrar details.
The IPO listed on 17 Aug 2026 at ₹1193.8 against an issue price of ₹871 (+37.06% on listing day). The current market price (CMP) is approximately ₹1727.35 (+98.3% vs issue).
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 12 Aug 2026. The company is priced at 2.25× the auto components sector midpoint (44.9x P/E vs 20x benchmark) with a net profit margin of only 8.7%, well below the 15% threshold needed to justify premium valuation. High OFS (54.3% of issue) combined with stretched valuation and weak margin expansion create material downside risk for retail investors.
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 12 Aug 2026. The IPO is priced at a P/E of 44.9x. Market cap at issue price is ₹17816.14 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The issue closes on 12 Aug 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Dhoot Transmission Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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