Studds Accessories Ltd IPO: Riding India’s Two-Wheeler Safety Wave – Should You Subscribe?

At a Glance

Company and Business Operations

Studds Accessories Limited, incorporated in 1983, is a leading manufacturer of two-wheeler helmets and riding gear in India. It designs, manufactures, markets and sells helmets under the “Studds” brand (mass / commuter segment) and “SMK” brand (premium / performance segment), along with accessories such as riding jackets, gloves, luggage boxes, rain suits and eyewear. The company operates four manufacturing facilities in Faridabad, Haryana, and supplies through a pan-India distributor network while exporting to 70+ countries across Asia, Europe, Africa and the Americas. The promoters are Madhu Bhushan Khurana, Sidhartha Bhushan Khurana and Shilpa Arora.

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Industry Outlook

India added 23.83 GW Solar capacity in FY 2025, taking installed solar to 105.65 GW. EPC services for solar were Rs 49,380 crore in FY 2025, up from Rs 26,920 crore in FY 2023 (approx. 36–37 per cent CAGR over two years). O&M services were Rs 660 crore in FY2025. Drivers include tendering momentum, tariff-driven grid parity, subsidies (notably rooftop), ISTS charge waiver and financing availability. CRISIL expects 170–180 GW of Indian solar additions during FY 2026–FY 2030. Globally, supportive policy and tech learning curves sustain multi-year growth.

Objects of the Issue

• The IPO is a 100 per cent Offer for Sale of 7,786,120 equity shares, aggregating up to approximately Rs 455.49 crore at the top end of the price band.
• The company will not receive any proceeds; all funds go to selling shareholders.

SWOT Analysis

• Strengths:
  Market leader in India’s two-wheeler helmet segment by revenue, with strong brand equity in “Studds” (mass) and “SMK” (premium). Wide export reach across 70+ countries and in-house manufacturing scale in Faridabad help cost competitiveness and product range depth.
• Weaknesses:
  Revenue remains closely tied to domestic two-wheeler demand cycles and enforcement intensity of helmet norms. The IPO is purely an OFS, so no fresh capital enters the business for expansion or deleveraging.
• Opportunities:
  Premiumisation of riding gear, stricter safety regulation, and export growth (Europe, Latin America, Asia) can lift realisations and margins.
• Threats:
  Imported and domestic branded competition, raw material price swings (polymers, visors), and any relaxation in compliance or safety enforcement could impact volume and profitability.

Profit & Loss (Rs crore)

(Source: Company RHP)

Balance Sheet (Rs crore)

(Source: Company RHP)

Working Capital & Cash Position (Rs crore)

(Source: Company RHP)

Peer Comparison

Peers in helmets / protective gear are typically unlisted or smaller, and direct listed comparables are limited. Figures for Studds’ profitability and leverage are sourced from RHP; multiple-based valuation at IPO price band is inferred using FY25 restated earnings.

(Source- Screener and figures as of October 29, 2025)

Outlook & Relative Valuation
The investment thesis for Studds Accessories is anchored on three enduring structural drivers: (1) stricter enforcement of compulsory helmet norms in India, (2) ongoing premiumisation in the riding gear segment, and (3) growing export opportunities. The company’s dual-brand strategy — “Studds” catering to mass-market commuters and “SMK” targeting premium riders — enables it to straddle both high-volume and high-value customer segments effectively. With four manufacturing facilities in Faridabad, in-house capabilities across tooling, painting, visor, shell, and graphic production, Studds maintains tight control over cost, quality, and turnaround time, reinforcing both margin stability and brand loyalty.

Its vertically integrated operations and strong design and development capabilities further enhance efficiency, while its broad domestic distribution network and expanding global footprint underscore its brand scale. The company also benefits from multiple international quality certifications, strengthening its credibility in export markets.

On valuation grounds, at the upper price band of ₹585, the IPO is priced at around 33x FY25 earnings, which appears reasonable for a consumer safety brand with global presence and double-digit operating margins. Although the entire issue is an Offer for Sale (OFS) — implying no fresh capital inflow for capacity expansion — investors are essentially buying into a mature, cash-generating franchise rather than a capex-led growth story.

Recommendation: Subscribe (Long-Term View)
Studds stands out for its brand leadership, export potential, disciplined manufacturing, and rising profitability in a segment supported by regulatory tailwinds. While valuations are not cheap, they remain justified for a consumer safety brand with pricing power and global visibility.