Market analysts are focusing on two key financial and automotive sector players, with Jefferies initiating coverage on the newly listed Dhoot Transmission and Bajaj Finance reporting strong quarterly business updates.
The public issue comprises a fresh issue and an offer for sale. Bajaj Finance holds a total market capitalisation of ₹6.11 lakh crore according to data on the NSE.
Jefferies has initiated coverage on Dhoot Transmission, projecting a 24% revenue CAGR and a 27% EPS CAGR over the FY26-29E period. The brokerage has set a price target of Rs 1,730, implying a potential 20% upside. Dhoot Transmission currently holds a 41% market share in India's two-wheeler and three-wheeler wiring harness market.
Analysts highlight electrification as a structural opportunity, noting that wiring harness content in electric two-wheelers is 1.5 to 2.5 times higher than in entry-level internal combustion engine vehicles. Dhoot holds a 70% market share in the electric two-wheeler and three-wheeler wiring harness segment. While the company's core business remains wiring harnesses, which accounted for 77% of FY26 revenue, it is diversifying into battery packs, sensors, and controllers. Despite a rich one-year forward PE of 43x, Jefferies views the valuation as justified by the company's growth profile, though it flagged risks including potential supply overhang from private equity investors holding a 42% stake.
For the warrant issue, a minimum of 25% consideration is payable on allotment and the balance 75% upon equity share conversion within 18 months, with forfeiture upon non-exercise. Dhoot Transmission holds approximately 70% market share in electric 2W and 3W wiring harnesses, while closest peer Motherson Sumi Wiring India is more than twice Dhoot's overall revenue size.
Bajaj Finance shares rose 5% to Rs 993 on Monday, snapping a four-session losing streak following a positive Q2 business update. The company reported a nearly Rs 37,800 crore increase in Assets Under Management (AUM) during the July-September quarter, marking its highest growth in seven quarters. The customer franchise reached 12.89 crore as of September 30, 2026, with over 44 lakh new customers added during the quarter.
New loans booked increased 11% year-on-year to 1.345 crore, although the company noted that these figures are not directly comparable to the previous year due to the early onset of the festive season in the base period. Jefferies has reaffirmed its 'Buy' call on Bajaj Finance, maintaining a target price of Rs 1,280, which implies a 35% upside potential.
