Studds Accessories Unlisted Share

₹799

*Average Price as per 7 May, 2024

Fundamentals

FACE VALUE

BOOK VALUE

172

NO OF SHARES

19676700

EPS

16.85

SALES

499

INDUSTRY PE

DIVIDEND

DIVIDEND YIELD

0.3

58.46

5.73

3.88

MARKET CAP

1938.15

EQUITY

9.84

PAT

MESSAGE

2022-23

OVERVIEW

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Indian Economy Overview

The effects of a constant weakness in the global economy trickled down to the Indian economy as well and softened growth during the year. It registered a growth of 4.2% in FY 2019-20. Factors such as subdued consumer demand, decline in Index of Industrial Production (IIP) output, turbulence in non-banking financial institutions and lower investments further hampered growth prospects.

To add fuel to fire, the COVID-19 pandemic and the ensuing lockdowns from the last week of March 2020, adversely impacted the Indian economy. It disrupted supply chains and halted production as businesses were compelled to shut down temporarily. However, economic activity resumed in phases as the lockdowns continued to be lifted from time to time.

The government of India also announced policy support for individuals as well as businesses to provide relief during the crisis. It also initiatedefforts to revive MSMEs. Apart from this, the government announced a stimulus package of Rs. 20 lakh crore to revive the Indian economy and support ailing industries.

The Indian economy is projected to contract by 4.5% in 2020 owing to severe disruptions of economic activity due to the COVID-19 pandemic. But, favourable policies and fiscal measures are likely to stimulate growth and the economy is expected to recuperate with a robust growth of 6% in 2021.

Helmet Industry Overview

Helmets ensure the safety and security of motorcycle and scooter riders, reducing chances of head injuries and prevents serious mishaps in the instance of road accidents. Due to growing road accidents and fatalities, and below par road infrastructure in India, the demand for safer helmets have increased. Emphasizing the need to enforce road safety, in several places, helmets for riders as well as pillions have been mandated by the government. This is one of the major reasons for the increasing demand for helmets. India is also the world’s largest two-wheeler market and has therefore, become the largest market for two-wheeler helmets. Amendment of Section 129 of the Motor Vehicle Act strictly enforces certain guidelines for wearing helmets that ensure safety. According to the Act, every motorcycle rider should wear an ISI marked helmets which complies with Safety Standards specified by Bureau of Indian Standards. As customers continue to seek the best quality helmets, the branded helmet segment is anticipated to witness rapid growth. It is also likely to be extremely beneficial for companies like Studds, which is among the leading players in the Indian Two-Wheeler Helmet market.

The Indian Two-Wheeler Helmet industry is projected to grow at a CAGR of 14% during 2021-20265, owing to stringent road safety regulations and strict implementation of safety measures for commuters as well as helmet manufacturers.

Rising awareness about road safety is also going to contribute to the growth of the two-wheeler helmet industry. Governments is keen to reduce deaths due to road accidents and is therefore, enforcing stringent road safety laws pertaining to the use of helmets, seat-belts, child restraints, drunk drinking, speeding etc. All these factors are likely to drive growth of this segment.

INSIGHT

Studds Accessories Limited Financial Snapshot

During the financial year under review revenue was Rs. 4625.07 million in FY 2021-22, as compared to Rs. 4,796.15 million in FY 2020-21. The EBITDA was at Rs. 597.05 million in FY 2021-
22 as compared to Rs. 1151.07 in FY 2020-21. Net Worth stood at Rs. 3108.07 million in FY 2021-22 as compared to Rs.2898.90 million for FY 2020-21. Total comprehensive income for the period stood at Rs. 287.85 million in FY 2021-22 as compared to Rs. 739.14 in FY 2020-21.During the financial year 2021-22, NIL amount has been transferred to General Reserve.

Despite volatilities the company performed well and the top line grew by 10.85%. Besides, growth in the top line, the operating EBIDTA grew at 41.16% and the Profit After Tax grew by 81.05% from the preceding year. The company have been focusing on the further development of it’s state-of-the-art manufacturing units and have relentlessly aspired to enhance skill development opportunities for its people. They have also made significant investments to develop a world-class R&D facility, backward integration by manufacturing EPSL in their plant, with an endeavour to improve the quality of their products and meet stringent safety standards. Looking ahead, the company aspires to enhance its operational efficiency and invest in latest technology to innovate unique products.Lorem Ipsum

"STUDDS ACCESSORIES RESEARCH REPORT"

ANNUAL REPORT

Studds Annual Report 2022

Studds Annual Report 2021

Studds Annual Report 2020

Studds Annual Report 2019

Studds Annual Report 2018

SECONDARY NAME

Studds Accessories Unlisted Share

ISIN

INE00Q601028

CDSL