Riding India’s Two-Wheeler Safety Wave-Shares of Studds Accessories Ltd Get Listed on BSE & NSE

Today, the stock market was trading in red with SENSEX down 0.65 per cent and NIFTY-50 down 0.64 per cent. On the stock market, shares of Studds Accessories Ltd got listed. On the BSE, the stock is listed at Rs 570 per share and on the NSE, the stock is listed at Rs 565 per share while the IPO price was Rs 585 per share.

Studds Accessories Limited, a prominent manufacturer of two-wheeler helmets and riding gear, is entirely an Offer for Sale (OFS), targeting an issue size of up to Rs 455.49 crore. The price for the equity shares at the upper price band was Rs 585 per share, each with a face value of Rs 5. The minimum application lot size is 25 shares, requiring a minimum investment of Rs 13,925 at the lower end of the band. The entire proceeds from the OFS will go to the selling shareholders, leaving the company itself without any funds.

Incorporated in 1983, Studds Accessories operates under a robust dual-brand strategy. The "Studds" brand targets the mass/commuter segment, while the "SMK" brand caters to the premium/performance segment of the market. This approach effectively positions the company to capture both high-volume and high-value customer bases. The company is a market leader in India by revenue and operates four vertically integrated manufacturing facilities in Faridabad, Haryana, which provides strong control over cost, quality, and production efficiency, supporting its cost competitiveness and brand scale.

Studds has demonstrated a strong financial track record, showing consistent growth in revenue and profitability. From FY23 to FY25, Revenue from Operations grew from Rs 499.17 crore to Rs 583.82 crore, and Net Profit (PAT) more than doubled, increasing from Rs 33.15 crore to Rs 69.64 crore. The investment thesis is supported by key structural drivers: the ongoing premiumisation trend in riding gear, stricter enforcement of compulsory helmet norms in India, and growing export opportunities across 70+ countries in Asia, Europe, Africa, and the Americas.

On the valuation front, the IPO is priced at approximately 33x FY25 earnings at the upper band. This valuation is considered reasonable for a mature, cash-generating consumer safety brand with double-digit operating margins and a strong global presence, despite the pure OFS structure implying no fresh capital for business expansion.

Disclaimer: The article is for informational purposes only and not investment advice.