Studds Accessories Limited Unlisted Shares|Latest Share Price & Updates

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Company Overview

STUDDS Accessories Limited is a leading manufacturer of helmets and motorcycle accessories. The company’s registered office is in Faridabad, Haryana which is newly built and is Asia’s biggest helmet manufacturing facility. It offers a wide range of two-wheeler helmets and accessories and possesses state-of-the-art manufacturing facilities, equipped to deliver over 130 lakhs helmets every year.

STUDDS has a strong global presence across Europe, Asia, Latin America and the Middle East, covering more than 40countries around the globe. The company’s continuous emphasis on safety along with style, design and quality has created a loyal following for its unique products.

They have launched premium two-wheeler helmets under the name of ‘SMK’ in 2016, which has emerged as the leading brand with the largest market share in the premium two-wheeler helmet segment.

Since its inception in 1983, over 3decades, the company has continuously innovated products to ensure the safety to two-wheeler riders.

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. 

Overview

Description: The company designs, manufactures, and distributes safety equipment. It offers full face, flip up, off road, sporting, and industrial helmets.

Products & Services: 

Full face helmet : full face helmetFlip up full face helmet :flip up full face helmet Flip off full face helmet :flip off full face helmet

Off road full face helmet :Off Road Full FaceOpen face helmet :open face helmet Sporting helmet :sporting helmet

Industrial helmet :industrial helmet

Category: Manufacturer

The current status of Studds Accessories Ltd. is – Active.

Business Model

Company sells helmets under two brands, Studds and SMK. The brands are focused on the mass-market commuter (Studds) and premium (SMK) segments. The company also manufactures two-wheeler lifestyle accessories under the Studds brand.

Studds two-wheeler helmets is the largest selling two-wheeler helmet brand in the two-wheeler helmet market in India in terms of volume of helmets sold in India, 6.41 million with a market share of 25.66% and exporting their helmets to 45 countries. The company also produces a range of products in the two-wheeler lifestyle accessories under the Studds brand including backpacks, gloves, eye wear, two-wheeler luggage, and helmet security guard.

Revenue Growth in FY 2022

In FY22, the company has spent a lot in advertising due to which the advertising expenses of the company has climbed by 107%, after spending so much on advertising the company’s exports increased by 80.57% but there was a decline of 14% in the in-land sales from where the company earns most of its revenue.  As a result, the company’s total revenue decreased by 3.35% this year.

Net Profit in FY 2022

This year, the company has not been able to generate higher revenue than previous year, and the cost of raw materials consumed of the company has also increased by 27%. Because the company paid higher salaries/wages to its employees this year due to which the company’s employee benefit expense has climbed by 14.83% also the company’s depreciation has increased by 25%, resulting in significant decrease in its profit by 61.29% in FY22.

Registered Office

The registered office of Studds Accessories Ltd. is at Plot No. 918, Sector 68, IMT, Faridabad, Faridabad, Haryana.

SymbolStudds Accessories Ltd.
Face Value (₹):5
ISIN:INE00Q601028
Demat Status:NSDL & CDSL
Lot Size:10 Shares

Board of Directors

NameDesignationProfile
Mr. Madhu Bhushan KhuranaChairman & Managing Directorlinkedin
Mr. Sidhartha Bhushan KhuranaManaging Directorlinkedin
Mr. Shanker Dev ChoudhryIndependent DirectorNA Final 1
Ms. Pallavi SalujaIndependent Directorlinkedin
Mr. Pankaj DuhanIndependent Directorlinkedin

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 has made significant development by making investments so as to develop a world-class R&D facility and backward integration by manufacturing EPSL in the plant.
  • In India, the market for two-wheeler helmets is expected to grow by around 25% by 2023. As consumers become more aware of safety, coupled with advanced safety features being introduced in two-wheeler helmets, the market for two-wheeler helmets is expected to grow significantly.

Ratio

RatioFY22FY21
Operating Margin9%21%
Net Profit Margin6%15%
Return on Equity10%29%
Debt-Equity0.140.10
Current Ratio1.371.40
Dividend Payout21%11%

Note:- Dividend payout = Total Dividend/Net Income.

It indicates, how much % of its Net Income, the company is paying out as dividend to its Shareholders.

Financial Highlights

Particular2021-222020-212019-202018-192017-18
Total Revenues (₹ crores)468484420397341.7
PAT (₹ crores)29747541 33
Diluted EPS (₹)14.5537.6137.8920.9216.71
Book Value per Share (₹)158.00147.38109.6480.15*1079
Equity (₹ crores)311290216158118

Note:- * 2018-19 onwards, Book Value declined due to the following changes in the capital, which eventually increased the No of o/s shares:-

1) During the year 2018-19, Split-off took place by converting the equity shares of face value of ₹10 per share into equity shares of face value of ₹5 per share.

2) Bonus shares were issued in the ratio of 8 equity shares for every 1 equity share held.

Financial Charts

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Historical Chart

Shareholding Pattern

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Peer Comparison

CompanyMarket Cap (₹ Crores)Profitability Margin (%)ROCE (%)ROE (%)D/E RatioP/E RatioP/B RatioBook Value per Share (₹)
STUDDS Accessories Ltd17616%12%10%0.1461.515.66158.00

Note:- There is no other helmet manufacturing peer or which deals in the similar operations as Studds, in listed market.

The other players in the helmet industry under unlisted world are:- Vega, Steelbird, SMK, Fastrack, MT, LS2, Royal Enfield Helmet etc.

Media Updates

“Interview With Sidhartha Bhushan , MD, Studds Accessories Ltd – On the Future of Helmet Industry in India”

Read More:

FM suggest to cut GST on Two– Wheelers”

Two wheeler Road Trip banner4

“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.

Read More:

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.”

Read More:

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. 

Read More:

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.

Read More:

Covid -19 Earning Opportunity–Studds retailing the protective glasses and the face shield to assist efforts against Corona Virus”

face shieldmask

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 Rs200, The face shield retails at Rs300. Studds have clarified that the glasses can shield can be bought directly from the manufacturer through its social media pages,mail or phone.

Read More:

Frequently Asked Questions 

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.

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,1992. 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.

Last Updated-19th Jan,2023

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