STUDDS ACCESSORIES SHARE PRICE | LIVE UPDATE | COMPANY OVERVIEW
Famous as the world’s largest manufacturer of helmets, Studds Accessories Ltd has come a long way from manufacturing its first helmet in the garage to now manufacturing more than 6 million helmets every year. Founded in 1983, Studds products are now available in 40 countries. Studds has one wholly owned subsidiary: SMK Europe Unipessoal LDA, based in Portugal.
Studds is expected to benefit the most from the newly government norms of only BIS- certified helmets to be made and sold in India. The demand for helmets is expected to grow at a double-digit growth rate in the coming years due to stringent traffic norms, increase in market share of organised players and rise in sales of premium vehicles. Foreseeing strong future demand, the company has invested ₹ 200 crores under Govt. of India ‘Make in India’ scheme to double its manufacturing capacity from present 7 million to 14 million. The manufacturing plants are fully automated and equipped with moulding, visor coating, paint shops, packaging and warehousing units. The manufacturing plants of Studds are the biggest in Asia.
Studds has partnered with Rajasthan Royals as their associate sponsor for IPL 2021 and 2022 season. Studds has a strong distribution network and chain of exclusive brand outlets across India. Presently, Studds has 26% market share in India aiming to increase its market share to 40% in the coming three years.
Following is the history of dividends declared by Studds Accessories Ltd in the recent past:
2022: Rs 3 per share
2021: Rs 4 per share
2020: Rs 4 per share
2019: Rs 3 per share
2018: Rs 0.50 per share
As on 31-March-2022, the total outstanding shares of the Studds Accessories were 1,96,76,700 shares of face value of Rs 5 each and promoters own more than 69% of the total shareholding. At Rs 1,175 share price in the unlisted market, the total market cap of the company was approx Rs 2,300 crores and P/E of 81x (1175/14.55).
Studds is a leading manufacturer and exporter of automotive and bicycle helmets, motorcycle accessories, and face shields. The company sold 59 lacs helmets during FY 2022. The company has 4 manufacturing plants, all of them located in Faridabad, Haryana. Besides helmets, Studds also manufactures two-wheeler accessories like jackets, side boxes, top boxes, gloves, rain suits and goggles.
The company exports around 20% of its turnover to around 40 countries in the Middle East, Europe, North America and Latin America.
The company retails its helmets under 2 brands: STUDDS and SMK. STUDDS is positioned towards the domestic market while SMK is an export-focussed premium brand.
The registered office of the company is located at Mathura Road, Ballabgarh, Faridabad, Haryana.
|Symbol||Studds Accessories Ltd.|
|Face Value (₹):||5|
|Demat Status:||NSDL & CDSL|
|Lot Size:||10 Shares|
Board of Directors
Key Business Highlights
- World’s largest helmet manufacturer with the production capacity of 14 million helmets, Studds is growing fast to grow its market share from 26% to 40% in the coming three years on the back of rising market share of organised players and stringent regulations.
- Studds maintains excellent corporate governance standards and consistently distributed dividends at average 10% of net profits.
- Studds is a relatively debt-free company and maintains a negative working capital cycle.
- Studds is expanding its retail presence through dealerships and exclusive brand outlets and aims to double its exports presence in the coming three years.
|Net Profit Margin||6.12%||15.28%|
|Return on Equity||9.53%||29.23%|
|Total Revenues (₹ crores)||468||484||420||397||341.7|
|PAT (₹ crores)||29||74||75||41||33|
|Diluted EPS (₹)||14.55||37.61||37.89||20.92||16.71|
|Book Value per Share (₹)||158.00||147.38||109.64||80.15||1079|
|Equity (₹ crores)||311||290||216||158||118|
|Company||Market Cap (₹ Crores)||Profitability Margin (%)||ROCE (%)||ROE (%)||D/E Ratio||P/E Ratio||P/B Ratio||Book Value per Share (₹)|
|SAR AUTO PRODUCTS LTD||300.00||10.54%||8.07%||7.45%||0.35||200.42||14.97||31.73|
|HINDUSTAN HARDY LTD||39.00||5.88%||30.64%||24.61%||0.43||9.73||2.39||99.83|
“Interview With Sidhartha Bhushan , MD, Studds Accessories Ltd – On the Future of Helmet Industry in India”
“FM suggest to cut GST on Two – Wheelers”
“Two-wheelers are neither a luxury nor sin goods and so merit a GST rate revision. Thus the need for lowering GST rates on two-wheelers which she assured was indeed a good suggestion as this category is neither a luxury nor a sin good and hence merits a rate revision,” the statements said Finance Minister Nirmala Sitharaman said at an industry interaction on Tuesday.
Two-wheelers currently attract 28 per cent GST. Two-wheeler has become a basic necessity for transportation of millions of medium-income group households in India. Under this pandemic condition also demand for two – wheelers has increased and shall increase further due to factors such as – Social Distancing and Personal Mobility , Shifting towards low budget vehicals, vehical finaning availiability , leasing a better option and lower commitment.
This move shall be a great one for both two- wheeler, helmet manufacturer and other accessories products related to two-wheelers industry.
“Huge Opportunity for Organized helmet players: Over 80 million two-wheeler riders need helmets”
In a phone interview with Mint Mr. Sidhartha Bhushan Khurana, managing director, Studds Accessories told” There are about 21 crore two-wheelers plying on the roads in India. Out of that, only 60% people wear helmets. More than 8 crore people still need helmets as the necessary headgear for safety.”
“The government had issued a mandate for the two-wheeler riders to compulsorily wear helmets a few years ago and this move has resulted in an exponential growth in the demand of helmets over years as the two-wheeler market recorded sharp growth over the last decade.”
“The life of a regularly used helmet is typically 3-4 years. So that market is the biggest market for us. That said, the life of a bike is around 10-12 years in India. So one motorcycle sees 3 to 4 helmet replacements on average.Pegging the current market size at 2.5 crore helmets per year, Studds command a 30% market share in this segment and expected to touch 40% in next few years.”
“Studds Accessories Ltd aims for domestic market share of 40% by next 3 years with 10% growth in its business in FY2021”
Studds Accessories Ltd in FY 2020 has sold around 7.2 Million Helmets out of which 5 lacs helmets were exported and remaining were sold in domestic market. The demand for helmets has increased in domestic market and so the company has started off with its new plant at Faridabad with installed capacity of 6 million helmet p.a With this new plant the total production capacity of Studds stands at 12.5 million bike helmets and 1.5 million bicycle helmets p.a.
With government initiative of “Banning Non -ISI certified helmets” will be a major boost for organized players such as Studds, Vega , Steelbirds, etc. Thus with all this positive notes management aims to capture over 40% of domestic market by next 3 years time frame and also despite pandemic situation aims to achieve growth of 10% in FY 2021.
The amendment in the Motor Vehicle Bill for road safety laws will come into effect from 1st March, 2021.This shall be a boost to ISI certified helmet makers.
Two wheeler segment is buzzing with action in India. This segment has attracted attention as people are wary of public transport fearing spread of coronavirus. Sales of pre-owned vehicles is also going up. We are almost back to pre-corona demand levels.This year we intend to launch 12 new Exclusive Brand Outlets (EBOs) across the country. The capex for the EBOs would be about Rs 3 crores. For our industry, we feel sales will increase post COVID due to apprehensions of using ride sharing and public transport”.
At the moment Studds has all 4 units operational with about 80% capacity.
“Government puts ban on Non ISI Helmets in Two Wheeler” – Positive move for Organized Helmet Players
The Ministry of Road, Transport and Highways released a notification laying down new norms for two-wheeler helmets under which all helmets will require ISI certification and the 1.2-kg weight limit has been dropped.Helmet manufacturers in India will not be able to manufacture, stock, and sell helmets that are not certified by the Bureau of Indian Standard’s (BIS) safety standards. The new norms will come into effect in March 2021. The two-wheeler helmet manufacturers association has welcomed the government’s decision, lauding it as a positive move towards curbing the sale of non-standardized helmets.
“Covid -19 Earning Opportunity – Studds retailing the protective glasses and the face shield to assist efforts against Corona Virus”
Due to Covid -19 the manufacturing of helmets and other bike accessories are at halt so Studds has decided to channelize its existing manufacturing expertise to earn out of rising social demand and also contribute to the society.Thus company has started manufacturing – “Face Protection Shield”, “Face mask” and “ Protective Googles”.This shows that the company is proactive and has excellent skills in utilizing it resources to its best.These products enjoys high margins and thus shall benefit the topline and overall business performance.
The protective glasses are priced at Rs 200, the face shield retails at Rs 300. Studds have clarified that the glasses can shield can be bought directly from the manufacturer through its social media pages, mail or phone.
Frequently Asked Questions (FAQs) on Studds Accessories Unlisted Shares
The buying and selling of unlisted shares, and pre-IPO shares is fully legal and valid.
The procedure to buy the Studds Accessories shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. Once the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day.
In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.
The Studds Accessories shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.
The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size of Studds Accessories, please visit the stock page on our website: www.delistedstocks.in/current-offerings/studds-accessories-ltd/
There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares.
Before IPO, there is no restriction on sale and transfer of your Studds Accessories shares. But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.
Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR (Unique Transaction Reference) number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.
If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.
The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI. The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors.
The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange.
Yes, NRI’s can also buy and sell Studds Accessories shares just like domestic investors. But their investment is on a non-repatriable basis.