Studds Accessories: Riding the Safety Wave in a Growing Two-Wheeler Market

Summary

Studds Accessories, India’s largest helmet manufacturer, is gearing up for a 2025 IPO. With strong global reach, rising financials, and premium brand SMK, Studds is poised to benefit from India’s growing two-wheeler safety market. This article explores its business model, financials, peer comparison, and investment potential.

One name sticks out in the helmet manufacturing industry as India works to promote road safety, increase the number of two-wheelers on the road, and diversify its exports: Studds Accessories Limited. With almost 50 years of experience, a large market share, and a strong global footprint, Studds has subtly become a well-known and reliable brand among riders all over the world. Investors are now asking the crucial question: is Studds worth including in your portfolio as the firm prepares for a public listing?

India's Helmet Revolution: An Emerging Market

Despite being the largest two-wheeler market in the world, helmet penetration is still low in India. Nonetheless, the market for premium helmets is expanding quickly due to growing awareness, more stringent traffic safety regulations, and rising disposable income. Studds finds itself in a golden situation when you combine this with the tendency toward organized players and premiumization.

Industry projections indicate that regulatory tailwinds and rising exports will propel the Indian helmet market's growth at a 12–15% CAGR. With its two major brands, SMK (premium category) and Studds (mass segment), Studds is ideally positioned to capitalize on both domestic volume and international value.

Business Model: Affordable for Ambitious

Under two brands, Studds offers a wide range of products:

1. Studds: Provides reasonably priced, fashionable, and safety-certified helmets to the mid- to mass commuter market.

2. SMK: Concentrates on high-end, technologically advanced helmets for both domestic and foreign customers.

The company produces riding accessories such as gloves, coats, sunglasses, rain suits, and luggage in addition to helmets. In the riding ecology, this aids Studds in establishing itself as a lifestyle brand.

Currently, the company operates four cutting-edge production facilities in Faridabad that can produce 9.04 million helmets annually. Being one of the few Indian companies with a worldwide presence, its products are distributed in more than 70 countries.

Fascinating Details That Set Studds Apart

• Studds owns the biggest helmet facility in Asia.

• Exports to more than 70 nations in Latin America, Africa, and Europe.

• DSIR-approved internal research and development center for safety and design advancements.

• One of the first Indian companies to be certified for European markets by ECE.

• Possesses the high-end SMK brand, which was developed for global markets.

Financial Performance

Studds has demonstrated steady growth over the past few years. Here's a quick snapshot of its financial performance:

Studds has shown consistent revenue growth, rising from ₹468 Cr in FY22 to ₹581 Cr (TTM FY25), with EBITDA nearly doubling in the same period. Margins have improved significantly — EBITDA margin expanded from 13% to 19%, while PAT margin jumped from 6% to 11%. EPS has more than doubled from ₹7.28 to ₹16.89, reflecting strong profitability and operational efficiency.

Peer Comparison

Compared to its peers and the industry average, Studds lags on profitability metrics like EBITDA margin (12.03%) and ROE (9.81%). However, it stands out for its low debt-to-equity ratio of just 0.02, indicating strong financial stability. While there's room for margin improvement, its clean balance sheet and global brand strength offer long-term investment comfort.

IPO Details

It is anticipated that Studds would begin its  initial public offering (IPO) in 2025 with a pure offer for sale (OFS) of 77.86 lakh equity shares. The funds will be distributed to current shareholders; there won't be a new issuance. The IPO is expected to be priced at a premium, with a projected P/E of around 50 times, and the face value is ₹5 per share.

Since it's an OFS, the IPO won't generate any funds for operations or growth, but it will provide visibility and give early investors exit liquidity. 

Pre-IPO Opportunity

Studds shares are now available in the Pre-IPO market, on websites like Sharescart, for investors who wish to make an early investment. This offers an opportunity to apply before to the public listing.

Concluding Remarks

Studds Accessories has a positive industry outlook, growing financials, and a legacy, strong brand, and global presence. Its low debt, product innovation, and premium positioning make it a good long-term investment for investors confident in India's two-wheeler and road safety ecosystem, even though its profitability indicators lag behind those of some of its peers.

Want a Quick Visual Breakdown?

If you prefer watching over reading, I’ve created a detailed YouTube video explaining Studds Accessories’ business, financials, peer comparison, and IPO opportunity in a simple and engaging format.

Watch here: YouTube Video Link

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