🚫 Avoid
Listed
Auto Components & Equipments
Dhoot Transmission Limited IPO
₹3,067 Cr · Fresh Issue & OFS · Auto Components & Equipments
Price Band
₹829 – ₹871
Lot: 25 shares (₹21,775)
GMP (Grey Market)
₹66 (+11.26%)
Est. listing ₹937
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. While revenue growth is strong at 27.7% CAGR, the valuation premium is not supported by margin expansion or profitability metrics.
Listing Performance
Issue Price
₹871
Allotment price
Listing Price
₹1193.8
+37.06% on listing day
Current Price (CMP)
₹1525.2
+75.1% vs issue
Listed On
17 Aug 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Strong revenue growth trajectory
The company has delivered 27.7% revenue CAGR over two years, growing from ₹2,799 Cr to ₹4,564 Cr, demonstrating solid market demand and business momentum in the auto components sector. This growth rate exceeds the 20% threshold typically associated with high-growth businesses.
✓ Strength
Healthy return on capital employed
ROCE of 29.66% and EBITDA margin of 17.15% indicate the company generates strong returns on invested capital and maintains reasonable operational efficiency. The low debt-to-equity ratio of 0.78x provides financial flexibility for future investments.
⚠ Risk
Severe valuation premium unjustified
At 44.9x P/E, the company trades at 2.25× the auto components sector midpoint of 20x—well above the 1.0–1.5× threshold for Subscribe-grade valuations. With a net profit margin of only 8.7%, there is no margin quality to justify this 125% premium to sector peers.
⚠ Risk
Profit growth lagging revenue expansion
While revenue CAGR is 27.7%, net profit CAGR is only 15.3%—a significant divergence suggesting margin compression or rising costs. This gap raises questions about the sustainability of profitability as the company scales.
₹ Valuation
Overvalued relative to sector norms
The P/E of 44.9x is 2.25× the auto components midpoint (15–25x range, 20x midpoint). Even the P/S of 3.9x appears stretched for a company with 8.7% net margins. The valuation leaves minimal margin of safety for retail investors.
👁 Watch
Monitor margin trajectory post-listing
Investors must track quarterly net profit margins closely; any further compression below 8.7% would signal operational stress and validate valuation concerns. Management commentary on pricing power and cost inflation will be critical.
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. While revenue growth is strong at 27.7% CAGR, the valuation premium is not supported by margin expansion or profitability metrics.
The current grey market premium (GMP) is ₹66, which is 11.26% above the upper band price of ₹871. This implies an estimated listing price of around ₹937. GMP is informal and unregulated — treat it as a sentiment indicator, not a guarantee.
The minimum lot size is 25 shares. At the upper band price of ₹871, the minimum investment per retail application is ₹21,775. You can apply for up to 13 lots (₹283,075) under the retail category (up to ₹2 lakh).
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 ₹1525.2 (+75.1% vs issue).
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 12 Aug 2026. The minimum investment is ₹21,775 for one lot (25 shares). 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. While revenue growth is strong at 27.7% CAGR, the valuation premium is not supported by margin expansion or profitability metrics.
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 minimum lot is 25 shares at ₹871 each, costing ₹21,775 per application. 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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