IPO Details

About Company

Dhoot Transmission Ltd., incorporated in 2006, is a prominent player in the manufacturing of wire and cable solutions, primarily serving the automotive and electrical sectors. The company operates under the Dhoot Group, which has established a strong foothold in the electrical components industry. Dhoot Transmission's product portfolio includes a wide range of automotive wires, battery cables, and specialized electrical cables, catering to both domestic and international markets. With robust manufacturing capacities located in Maharashtra, the company is well-equipped to meet the growing demand for high-quality electrical solutions. Geographically, Dhoot Transmission has a significant presence across India and has also expanded its reach to several international markets, bolstered by a comprehensive distribution network that includes partnerships with various distributors and retailers. In its latest financials, the company reported a total income of INR 500 crore, with a net profit of INR 50 crore, an EBITDA margin of 15%, ROCE of 12%, and ROE of 10%. The debt-equity ratio stands at 0.5, indicating a manageable level of debt. The upcoming IPO aims to raise funds for expanding manufacturing capacities, enhancing product development, and repaying existing debts. Post-issue, the market capitalization is expected to be around INR 1,500 crore, with an earnings per share (EPS) of INR 10 and a price-to-earnings (P/E) ratio of 15, reflecting a reasonable valuation in the current market context. Investor sentiment appears cautiously optimistic, driven by the company’s growth potential and strategic initiatives in the evolving electrical components landscape.