Studds Accessories IPO: 5 Key Points Before you Apply!
Studds Accessories IPO is a rare commodity hitting the public markets, being only the second helmet manufacturing company globally to go public. As the World's Largest 2W Helmet Player by volume, it offers investors exposure to a market with strong regulatory tailwinds and proven operational excellence. The timing is also opportune, given the recent GST cuts and robust festive sales driving pent-up demand in the auto sector.
My Final Verdict: Applying For Listing Gains And Long-term 🏍️
1. Market Dominance: Volume Leader with Strong Brands
Studds holds an undeniable leadership position both at home and abroad:
- Global Leader: It commands an 11% global market share in terms of volume, selling over 7.4 Million Helmets in FY25.
- India Leader: It is the undisputed Indian market leader with approximately 25% market share by volume and revenue.
- Brand Portfolio: The company manages two strong brands: 'Studds' (volume segment) and 'SMK' (premium segment). The strong volume growth (50%+) seen in the SMK brand signals a clear industry trend toward premiumization, which translates to higher margins.
- Reach: Studds exports to over 70 countries and supplies to major 2W OEMs (Yamaha, Honda, Hero) and institutional buyers like the Indian Army.
2. Operational Excellence: Vertical Integration & Cash Flows
The company's execution is excellent, driven by controlling the entire production process:
- Full Vertical Integration: Studds manages everything from EPS Liners, Decal Facility, Moulding, Designing, and Testing. This integration ensures quality control, speed-to-market, and greater command over operating costs.
- Capacity: It operates three facilities at a healthy ~82% utilization and is set to commence its 4th facility in Q4 FY26 to capture future growth.
- Healthy Cash Flows: Studds generated ₹63 Cr in Free Cash Flows (FCF) in FY25, indicating strong operational profitability and the internal leverage to fund its own growth aggressively without external capital.
3. Financial Health and Valuation
The company has a clean balance sheet with robust profitability and returns, making the stock fundamentally sound.
| Financials (₹ Cr) | FY24 | FY25 | Q1 FY26 |
|---|---|---|---|
| Revenue | 535.8 | 595.6 | 152.0 |
| PAT | 57.2 | 69.6 | 20.2 |
| EBITDA Margin | 16.8% | 17.6% | 19.9% |
The company is coming in at 33.06x FY25 P/E. Valuing Studds at 20x FY26E EV/EBITDA suggests a fair value of ₹725, implying a healthy upside of 24%. This is a reasonable valuation for a market leader with such strong margins and a clean balance sheet.
4. Key IPO Details and Risks
The IPO is a Full OFS, meaning the proceeds go to the promoters and shareholders, not the company. This is mitigated by Studds' strong cash flows, meaning they have sufficient capital to fund their expansion plans internally.
| Particulars | Details (Tentative) |
|---|---|
| IPO Dates | October 30 – November 3, 2025 |
| Price Band | ₹557 - ₹585 per share |
| Issue Size | ₹455.49 Cr (Full OFS) |
| Lot Size | 25 Shares (~₹14,625) |
The main weaknesses are Slow Growth from FY23-FY25 and Intense Competition in the price-sensitive volume segment. However, the premiumization trend (SMK brand) and the potential bounce back in 2W sales are strong mitigating factors.
5. Final Conclusion and Strategy
Studds is a rare, high-quality manufacturing stock with a clean balance sheet, strong FCF, and a dominant market position. The combination of strong fundamentals and reasonable valuation (relative to its growth potential) makes it a solid bet. I believe the institutional interest will be high, driven by its unique positioning as a global leader in a sector with mandatory demand.
My strategy is to Apply for both the listing gains and the long-term holding potential.
Just a personal view, for educational purposes only. Do your own due diligence before applying.
Studds Accessories IPO FAQs
Q. Is the Studds Accessories IPO a Fresh Issue or OFS?
A. The Studds Accessories IPO is a Full Offer for Sale (OFS) of ₹455.49 crore. The company itself will not receive any funds from the issue.
Q. What is Studds Accessories' market position?
A. Studds is the World's Largest 2W Helmet Player by volume (11% global share) and the largest in India with approximately 25% market share.
Q. What is the latest GMP for Studds Accessories IPO?
A. As of November 02, 2025, the GMP is approximately ₹67 per share, suggesting an estimated listing price of ₹652 (a gain of 11.45%).
Q. What are the key brands owned by Studds Accessories?
A. The company sells helmets under the brands 'Studds' (volume) and 'SMK' (premium), alongside other accessories like riding jackets and gloves.
Q. When is the allotment and listing date for Studds Accessories IPO?
A. The tentative allotment date is November 4, 2025, and the shares are scheduled to list on BSE and NSE on November 7, 2025.