Global brokerage Nomura has initiated coverage on Dhoot Transmission Limited with a “Buy” rating and a target price of ₹1,800 per share, signalling confidence in its role in India’s accelerating electric mobility transition. The brokerage believes Dhoot Transmission EV Growth could strengthen as electric two-wheelers and passenger EVs gain market share, increasing demand for wiring harnesses, battery-pack systems, and localized electrical components.
With the company holding a strong position in two- and three-wheeler wiring harnesses, Nomura expects electrification, localization, and customer additions to drive revenue growth, earnings expansion, and a larger EV-linked business mix through FY29.
Nomura has initiated Dhoot Transmission with a “Buy” rating and a ₹1,800 target price, expecting the company to benefit from India’s rising EV penetration, strong wiring-harness leadership, localization, and rapid growth in EV component demand.
Why Nomura Is Bullish on Dhoot Transmission
Nomura sees India’s electric vehicle market reaching an inflection point. Electric two-wheeler penetration is projected to rise from 6.6% in FY26 to 27% by FY31, while electric passenger vehicle penetration could reach 14% during the same period.
This transition could create an opportunity for suppliers of vehicle electrical systems, wiring harnesses, battery packs, and other EV-focused components. Dhoot’s strong presence in these categories places it positioned to benefit as automakers increase localized EV sourcing.
EV Revenue Could Nearly Double Its Share
A major trigger behind the Dhoot Transmission EV Growth thesis is the expected shift in the company’s revenue mix. Nomura projects EV-linked revenue contribution to increase from around 24% in FY26 to nearly 48% by FY29.
Key growth drivers include:
• New customer additions in the EV battery-pack business.
• Higher volumes across EV-focused electrical components.
• Growing localization of EV powertrain and electrical systems.
• Rising content per vehicle as electrification expands.
• Continued growth in non-wiring-harness businesses.
Strong Position in Wiring Harnesses
Dhoot Transmission commands an estimated 41% share of India’s two- and three-wheeler wiring harness market, while around 77% of its revenue comes from the wiring harness segment.
The company also reportedly holds a 70% to 80% wallet share in popular electric two-wheeler models. This gives Dhoot Transmission EV Growth a competitive foundation as electric scooters and motorcycles rapidly gain share of India’s mobility market.
Nomura Sees Strong Earnings Expansion
Nomura forecasts a 27% revenue CAGR and a 28% earnings-per-share CAGR between FY26 and FY29. EBITDA margins are expected to remain stable at 15.2% to 15.7%.
The brokerage believes backward integration and localization under Managing Director Rahul Dhoot should help protect profitability while the company scales its EV component operations.
₹1,800 Target Highlights EV Opportunity
Nomura’s ₹1,800 target compares with a previous closing price of ₹1,469.95, implying roughly 22% upside. The brokerage also highlights a projected return on invested capital of about 22%.
For investors tracking India’s electrification ecosystem, Dhoot Transmission EV Growth reflects a broader shift: as EV adoption accelerates, component suppliers with customer relationships, localized manufacturing, and high vehicle content could become important beneficiaries of India’s electric mobility transition.
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