In 2025, Indian primary market is still gearing and investors have unprecedented interest in consumer-based production industries. Studds Accessories Ltd. is also one of the new players, and is a first mover in the two-wheeler safety gears market with good fundamentals and international reputation.
Studds, which is a known company as the world largest by volume in the manufacture of helmets, has attracted enormous investor interest in its IPO both institutional and retail. The book was issued at a price band of 557–585 per share with the valuation of the public issue 455.49 crore, and opened on October 30, 2025.
The buzz isn’t without reason. A long-term growth runway of the category is created by the booming population of two-wheelers in India, increasing road safety laws and the growing affordability of the middle class.
Company Overview
Founded in 1983, the company Studds Accessories Ltd. started as a small company in the state of Haryana producing simple motorcycle helmets. More than 40 years later it is a world giant, shipping merchandise to more than 50 states in Europe, Asia, Africa and Latin America.
Studds has been successful due to its product ecosystem and focus on safety innovation. The portfolio of products of the company includes:
- Full-face, open-face, flip-up, modular and off-road helmet.
- Motorcycle and riding gear (visors, gloves, and motorcycle accessories).
- High quality helmets in its international brand SMK.
Studds is already the frontrunner in the Indian organized helmet industry with almost 27 percent market share as of FY24. It has a wide network of dealerships of over 4,500 retail stores with a support of e-commerce intrusion of Amazon, Flipkart, and its online platform.
In addition to the production, Studds has developed a brand trust and safety compliance ecosystem. All the helmets are ISI and ECE (European) certified, which guarantee both national and international reputation.
Product Portfolio and Manufacturing Strength
The manufacturing capacity of Studds is unrivalled in the helmet industry of India. The company has two of the latest plants in Faridabad, which are spread over 9 acres with a total capacity of 14 million helmets and 2 million accessories per year.
These facilities feature:
- Computerized paint and testing laboratories.
- Precision tooling mold manufacturing department.
- Wind-tunnel and impact testing facilities to ensure international safety standards
Studds flagship brand has different audiences:
- Targets: Low-end mass-market consumers; low-price, high-end helmets.
- SMK: Serves international and high-end motorcycle fans; competes with the European middle-end brands.
The efficiency of manufacturing in the company has enabled the company to maintain low costs without compromising the global standards of quality. Its internal system of operations, including design and molding, to the final finishing, allows exercising great control over production schedules and quality stability.
Market and Industry Environment
India boasts of the biggest two-wheeler market in the world with it selling more than 17 million two-wheelers every year. But the penetration rate of the helmets is still about 65% and there is a huge potential to increase the same.
With an Indian market of 3,000–15,000 crore in 2024, the Indian helmet market is expected to increase at a rate of 10–12 percent CAGR in the next five years.
Key catalysts include:
- Implementation of the acts of the Motor Vehicles (Amendment) Act 2019 providing compulsory ISI-certified helmets.
- Raising the safety awareness of youth commuters.
- Increased sales of high-end motorcycles under the 250 cc plus category.
- Urbanization and Tier-2/Tier-3 adoption of branded safety gear.
Globally, the motorcycle helmets market would have grown to USD 5.4 billion by 2029 and India and Southeast Asia would provide the highest growth.
Studds, being the large scale company with the local cost benefit and experience in exporting its products is strategically placed to gain both horizons of local and international demand.
IPO Details
| Particulars | Details |
|---|---|
| IPO Type | Offer for Sale (OFS) |
| Issue Size | ₹455.49 crore |
| Price Band | ₹557 – ₹585 per share |
| Face Value | ₹5 per share |
| Lot Size | 25 shares |
| Issue Period | Oct 30 – Nov 3, 2025 |
| Listing Date (Tentative) | Nov 7, 2025 |
| Listing Exchange | NSE & BSE |
| Promoters | S.N. Sehgal and Family. |
The IPO is entirely an OFS, which does not imply the fresh capital inflow. The sale will increase corporate visibility and public float which is one of the essential steps of transparent governance and future fundraising flexibility.
Financial performance overview
| Metrics (In crore) | FY21 | FY22 | FY23 | FY24 | CAGR (3 yrs) |
|---|---|---|---|---|---|
| Revenue from Operations | 512 | 558 | 592 | 670 | ~9.4% |
| EBITDA | 91 | 99 | 103 | 117 | ~8.5% |
| PAT | 60 | 66 | 68 | 74 | ~7.2% |
| EBITDA Margin | 17.8% | 17.7% | 17.4% | 17.6% | Stable |
| ROE | 15.8% | 16.2% | 16.8% | 17.3% | ↑ |
Highlights:
- The EBITDA margins of Studds have been steady even with the rise in the raw-material prices.
- High balance-sheet discipline is supported by low debt (0.3× D/E) and well-developed cash flow.
- Export turnover is a significant diversifying factor of risks contributing to about 11 percent of total turnover.
The firm has also continued to invest in automation as well as in research and development which facilitates in ensuring that its productivity level remains above average compared to the industry.
Peer Comparison
| Company | FY24 Revenue (₹ cr) | EBITDA Margin | ROE | P/E ( approx. ) | Remarks |
|---|---|---|---|---|---|
| Studds Accessories | 670 | 17.6% | 17.3% | 30× (at ₹585) | Market leader in helmets and accessories |
| Steelbird Hi-Tech (Private) | ~420 | 14.2% | 13% | Unlisted | Second-largest domestic player |
| VEGA Auto Accessories (Private) | ~310 | 12.8% | 12% | Unlisted | Strong Tier-2 presence |
| Endurance Technologies | 9,472 | 14.8% | 17% | 32× | Diversified auto component peer |
| Uno Minda Ltd. | 14,200 | 12.1% | 19% | 38× | Auto ancillary peer benchmark |
Interpretation:
Although the direct competitors such as Steelbird and Vega are not listed, when comparing the larger automotive component companies, it can be observed that the Studds margin and return ratio are competitive. It has a P/E that is in par with the industry award, indicating its reasonable, but not overpriced value.
Valuation and GMP Analysis
By November 3, 2025, the Studds Accessories IPO in the Grey Market Premium (GMP) was around 65–67 per share indicating a listing profit of 10–12 percent. At the upper price band of 585, implied market capitalization is about ₹2300 crores, translating to a ~4.9X P/B ratio. EPS (FY24): ₹19.2, P/E (FY24): ~30× (30.4), industry average P/E: 28–35×. Post listing valuation is estimated between 2,500–2,600 crore if GMP is sustainable.
All in all, the valuation is not underpriced or aggressive, so investors aiming at moderate long-term growth should recommend it.
Risk Factors and Challenges
Studds has strong prospects but has certain structural issues:
- Reliance on the demand for two-wheelers: any decline in the sales of auto or macroeconomic downturn will impact helmet volumes.
- Volatility in prices of raw-materials: EPS foam prices are subject to crude-oil derivative volatility.
- OFS structure: Because no new funds are being raised any expansions in the future have to depend on internal accruals.
- Export and forex risks: Exports make up more than 10 percent of the revenue, and margins are sensitive to rupee fluctuations.
- Non-certified helmets competition in informal market: Non-certified helmets still have a market share of approximately 35 percent.
Operation and Supply Chain Risk
Studds Accessories Ltd. has a very linked global supply chain that subjects it to a number of risks in its operations. Much of its raw materials including polycarbonate visors, high-strength shell materials and paint supplies are supplied by specific overseas suppliers. Any failure or interruption in these supply routes, whether through geopolitical tensions or trade restrictions would have a negative effect on the production schedules and margins.
Also, the company has been using third party logistics partners to deliver completed products to both local and international markets in large numbers. An increase in rail fares or inefficiencies at port will create a bottleneck, especially in the peak season such as festive or monsoon season when two-wheelers are moving well.
Although Studds has already spread the risk of suppliers and invested in automation in its Haryana and Faridabad plants, it is equally important to ensure a constant level of supply chain efficiency. It will be a determining factor that the company is capable of keeping inventory control, reliability of its vendors and optimizing costs to safeguard the profitability margin of the company.
Market and Consumer-Demand Risk
The demand for helmets and two-wheeler accessories directly depend on the overall performance of the automobile industry. Any decline in the sales of two-wheelers, whether due to inflationary forces, increase in interest rates or due to the uncertainty with regard to regulations, would instantly slash the growth of revenue of Studds.
Furthermore, since the trends of consumers are changing to use electric two-wheelers, the design and the compatibility of accessories are changing. Studds has the issue of constantly coming up with novelty that addresses these dynamic needs, maintaining products at affordable prices of the price sensitive market in India.
This is also complicated by the rivalry of organized brands such as Vega and Steelbird as well as unorganized local competitors. Unless margins are balanced by brand loyalty, high product lines, and export growth, pricing pressure would reduce them. To maintain its leadership in this competitive environment, it will invest in R&D and marketing on a regular basis.
Regulatory and Compliance Risk
Studds is a major producer of safety equipment and therefore its business is considerably regulated. Every helmet in India has to be certified against Bureau of Indian Standards (BIS) requirements and exporting products have to be qualified to different international safety standards including DOT (U.S.) or ECE (Europe). Any failure or delay of sustenance of these certifications will limit the sales in major markets.
Secondly, the environmental and labor compliance laws are still getting stricter, particularly with manufacturing activities of paint and plastics. Failure to comply might lead to monetary fines or loss of reputation.
Although the company has a good history of adhering to compliance measures, there might be new regulatory changes that arise in the future especially regarding electric vehicles safety measures or manufacturing processes that are environmentally friendly, leading to the need to invest more in technologies and technological enhancement of processes.
Growth Outlook
According to the roadmap of the company, the company is expected to grow sustainably by:
- Premiumization: SMK line expansion and partnerships with world distributors.
- Automation: Aiming at production time reduction of 20 percent by FY27.
- Growth in exports: 5 new markets in Europe and Latin-America.
- Brand investment: Tripling the level of digital marketing investments to enhance youth engagement.
By FY27, the management expects to achieve 1,000 crore in revenue, which means a CAGR of about 14% — a little higher than the industry growth.
Acumen’s Perspective
Our research team at Acumen Capital Market Ltd. feels that Studds Accessories Ltd. is at the point of regulatory push and consumer transformation.
From a valuation lens:
- It makes sense that the IPO was priced at the current rate of approximately 30 times earnings due to the brand leadership and strong margin.
- The low leverage, 17 percent ROE, and the premium category expansions give it long-term visibility.
- Our projections are a stable 12–14% revenue CAGR in the next three years which will be backed by rising export shares.
From a strategic standpoint:
- The wearing of a helmet is changing its attitude to a lifestyle. This psychological change is what Studds is taking advantage of.
- Its two-brand structure (Studds + SMK) is a guarantee of presence at all prices — a moat hard to imitate by new entrants.
- The agility and control of the production operation can be improved by technological innovation and the internal possibility to mold.
Final output
Studds Accessories is not in the business of selling helmets it is making money off of safety, branding and regulatory momentum.
Therefore, to investors who are interested in the long-term compounds of consumer-manufacturing and auto-accessory category, this IPO is a moderately appealing venture.
We place it at an Invest for Long-Term position — this is appropriate to investors who are looking to gain some stability and not to play the investment game.
FAQs
- What is the Studds Accessories IPO issue size?
₹455.49 crore (OFS only). - What is the price band for Studds Accessories IPO?
₹557 – ₹585 per share. - When does the IPO open and close?
Opens Oct 30 – Closes Nov 3, 2025. - What is the GMP (Grey Market Premium)?
Around ₹65–₹67 as of Nov 3, 2025, implying ~10–12% expected listing gain. - What are Studds’ key financial strengths?
Strong ROE (17%), steady margins (17.6%), low debt (0.3×), and brand dominance. - Who are its major competitors?
Steelbird Hi-Tech and Vega Auto Accessories (Private), plus comparable auto ancillary listed peers like Uno Minda and Endurance Technologies. - Should you invest in Studds Accessories IPO?
From Acumen’s perspective, yes, for long-term wealth creation, driven by India’s growing safety gear market and Studds’ export potential.
Conclusion
The Studds Accessories IPO is an example of the manufacturing turnaround of India in consumer durables. The company is a 4-decade old established firm with international presence, and consistent margins that demonstrate its operational strength.
The gains achieved during short-term listing may be minor, but it has a strong long-term narrative, which is led by road-safety enforcement, export diversification, and brand value growth.
The cost of the raw-materials and the post listing valuation should be observed by the investors, but the overall growth path of Studds is sound. With fintech and digital IPOs in the market, Studds reestablishes the power of physical businesses through products.
