Nomura initiates coverage on Dhoot Transmission with 'Buy' rating

Nomura has initiated coverage of Dhoot Transmission with a 'Buy' rating, signaling confidence in the automotive component manufacturer's prospects as India's electric vehicle sector expands. The brokerage has assigned a target price of INR 1,800 per share, reflecting its bullish outlook on the company's growth trajectory.

The analyst rating reflects expectations that Dhoot Transmission stands to benefit significantly from accelerating EV adoption across India. As domestic and international automakers scale up electric vehicle production to meet regulatory requirements and shifting consumer preferences, demand for critical components such as wiring harnesses and EV-specific parts is expected to surge.

Nomura's positive stance also reflects confidence in India's broader localization push within the automotive sector. The emphasis on domestic manufacturing of EV components is expected to create substantial opportunities for established suppliers like Dhoot Transmission, reducing dependence on imports and improving margins for local players.

The initiation of coverage underscores growing investor interest in India's automotive supply chain as the country transitions toward electric mobility. Companies positioned to capture this structural shift are drawing attention from major financial institutions seeking exposure to the country's long-term growth opportunities in the sector.