Studds Accessories IPO: Should You Apply? Detailed Analysis, GMP,

Introduction

The IPO season continues to stay active, and investors are once again looking at a fresh opportunity — Studds Accessories Ltd., a household name in the helmet and two-wheeler accessories industry.
With a legacy of over four decades and products sold across 70+ countries, Studds is stepping into the capital markets with its much-anticipated public issue. Despite a small issue size, the IPO has drawn attention due to its brand recall, steady financials, and decent grey market premium (GMP).

In this detailed analysis, we’ll break down everything you must know — from the company’s fundamentals to financials, strengths, risks, valuations, and whether this IPO deserves your application.

About Studds Accessories Ltd.

Founded in 1983 and headquartered in Faridabad, Haryana, Studds Accessories Ltd. is one of the largest manufacturers of two-wheeler helmets in the world by volume. The company operates in a crucial and fast-growing niche — motorcycle safety gear — where brand reliability and compliance with global safety standards play a major role.

Product Portfolio

Studds designs and manufactures a wide range of products including:

· Helmets under two major brands — Studds (mass & mid-range) and SMK (premium range)

· Motorcycle accessories such as jackets, gloves, luggage, rain suits, locks, and eyewear

· Specialized products for both domestic and export markets

Scale & Reach

· Annual manufacturing capacity: 9.04 million helmets (as of FY2025)

· Units sold in FY2025: ~7.4 million helmets

· Presence in over 70 countries globally

· Vertically integrated operations — including moulding, painting, stitching, EPS liner production, and testing facilities — ensuring end-to-end control on quality and cost

Business Segmentation

· Studds Brand: Targets the mass and mid-range market (price Rs 875–Rs 4,000)

· SMK Brand: Targets premium buyers in India and abroad (price Rs 3,000–Rs 12,800)

With a strong distribution network and growing export demand, Studds has maintained leadership in an industry with rising regulatory focus on safety and helmet compliance.

Studds Accessories IPO Details

Important Dates

· IPO Opens: 30 October 2025

· IPO Closes: 3 November 2025

· Allotment Date: 4 November 2025

· Refund Initiation: 5 November 2025

· Shares Credit to Demat: 6 November 2025

· Listing Date: 7 November 2025 (Tentative)

Apply IPO : Click Here

The IPO is a 100% Offer for Sale, which means the company isn’t raising fresh capital. Existing shareholders and promoters will offload their stake, while the business itself won’t receive new funds. For investors, this means no immediate expansion funding through IPO proceeds — a point worth noting while evaluating long-term potential.

Financial Performance Snapshot

Analysis of Financials

· Steady Growth: Revenue grew by 11% YoY, while PAT rose by 22% in FY2025, indicating operational efficiency and stable demand.

· Healthy Margins: EBITDA margin remains in a comfortable range, supported by cost control and integrated manufacturing.

· Low Debt Levels: With negligible borrowings, Studds enjoys a strong balance sheet and financial flexibility.

· Consistent Profitability: Profit growth has been consistent over the last few years, though not explosive.

Overall, the company appears financially sound, though growth is more steady than aggressive.

Key Strengths

1. Market Leadership

Studds dominates the Indian helmet market, commanding a strong presence across both mid-range and premium segments. This leadership gives it pricing power and brand recognition.

2. Strong Brand Portfolio

The dual-brand strategy allows the company to tap different customer bases — Studds for affordability and SMK for aspirational, global consumers.

3. Export Reach

Exporting to over 70 countries helps reduce dependence on the domestic market and provides exposure to developed markets where safety norms are stricter.

4. Vertically Integrated Manufacturing

Studds’ integrated production setup ensures quality control, cost efficiency, and faster product turnaround — key advantages over smaller competitors.

5. Low Leverage & Consistent Profit

A debt-light balance sheet gives Studds a buffer in economic slowdowns. Stable profitability enhances investor confidence.

6. Favourable Industry Tailwinds

Increasing road safety awareness, stricter helmet norms, and rising two-wheeler sales — both ICE and EVs — ensure steady demand for quality helmets.

Risks and Concerns

1. Pure OFS – No Fresh Issue

As no new funds are being raised, there’s no immediate capital infusion for expansion, R&D, or new product lines.

2. Moderate Growth

An 11% revenue growth rate is respectable but not high enough to justify aggressive valuations if priced at a premium.

3. Competitive Industry

The helmet and accessories market includes several organized and unorganized players, which could impact pricing power.

4. Raw Material Cost Volatility

Helmet production relies heavily on plastic resins, paints, and metals — all sensitive to commodity price fluctuations.

5. Dependency on Two-Wheeler Industry

A slowdown in two-wheeler sales could directly affect Studds’ revenue, as the business is tightly linked to this segment.

6. Regulatory and Export Risks

Changes in safety certification norms or export regulations could impact the company’s international business.

Valuation & Grey Market Sentiment

At the upper price band of Rs 585 per share, the implied P/E ratio is roughly 26–28x FY2025 earnings — fair for a consumer brand but slightly rich for a manufacturing-based business with moderate growth.

The Grey Market Premium (GMP) stands around Rs 80–Rs 85, indicating an expected 13–14% listing gain. However, GMP trends can fluctuate sharply and should not be treated as an accurate indicator of performance.

Verdict on Valuation

While Studds commands brand strength and profitability, investors must weigh valuation comfort against its growth pace. It’s a stable but not high-growth company — more suitable for conservative or long-term investors seeking predictable compounding.

Should You Apply for Studds Accessories IPO?

Apply If:

· You seek a stable, profit-making brand with strong fundamentals.

· You prefer companies with low debt and consistent financial performance.

· You believe in India’s long-term two-wheeler growth and rising road safety awareness.

· You want steady compounding potential rather than speculative listing gains.

Avoid or Apply Cautiously If:

· You prefer high-growth or tech-driven IPOs with stronger upside potential.

· You’re expecting short-term multi-bagger listing returns.

· You dislike OFS-only issues where no fresh capital is raised.

Our Verdict

The Studds Accessories IPO looks fundamentally sound — backed by brand strength, steady profits, and a clean balance sheet. However, given that it’s a pure OFS with moderate growth, investors should temper expectations.
This IPO fits well for long-term investors seeking stability but may not suit aggressive traders hunting for quick returns.

Conclusion

Studds Accessories has built an enviable reputation in the two-wheeler safety gear industry. Its diversified product line, export footprint, and financial discipline make it a dependable player. The IPO is small in size but backed by solid fundamentals and brand equity.

Still, investors must remember — this isn’t a rapid growth or tech play. It’s a steady compounder, ideal for those who appreciate consistent returns, not hype-driven rallies.
If you’re planning to apply, do it with a long-term mindset, not short-term excitement.

Apply IPO : Click Here