STUDDS ACCESSORIES LTD – FY 2018 RESULT UPDATE

Studds Accessories Ltd was incorporated in 1982 for manufacturing Helmets & 2 Wheeler accessories in India. Studds Accessories Ltd manufactures range of helmets and two-wheeler accessories (i.e full face, flip up full face, off road full face, open face sporting and industrial) is the largest in the segment, and it keeps evolving with every passing year. Thus catering to all type of customers need suiting their budget and requirements.

STUDDS has a market share of approx. 10% in the city like New Delhi, wherein in Mumbai, it has commanded a market share of 70 – 80%.

FINANCIAL HIGHLIGHTS: (All Fig. in Crs.)

PARTICULARS	FY 2018	FY 2017
TOTAL INCOME	342	311
PAT	33	24
EPS	16.71*	217.63
EQUITY PAID UP	9.837*	1.09
FACE VALUE	5	10
BOOK VALUE	542.95	788.35

*On 8^th June 2018 face value got split from Rs.10 to Rs.5 per share. And further company issued 8 equity shares for every 1 share held.

CONCLUSION:

1. Studds Accessories Ltdhas filled IPO draft with SEBI to raise Rs. 600 Crs via offer for sale of 3,939,000 shares and fresh issue of shares worth Rs. 98 Crs. Shares are to be listed on BSE & NSE. Funds raised are to be utilized for:

• Financing manufacturing unit III for motorcycle helmets and accessories at Faridabad. The unit is proposed to have production capacity of 6Mn. Helmets p.a

• Financing manufacturing unit IV for bicycle helmets at Faridabad. The unit is proposed to have production capacity of 1.5 Mn helmets p.a.

2. In 2017 STUDDS had launched an international brand SMK with focus on European & western market. This brand was very well welcomed by the customers fetching company higher margin which in turn will helped to increase the bottom line this year.

3. The company proposed to increase FII limit from 24% to 49% and NRI limit from 10% to 24% in EGM hrld on 7th July, 2018.

                                                                                                                           

4. In 2017 Cabinet has taken iconic step in Indian Road Safety measures by passing final Motor Vehicle (Amendement) Bill 2016 under which not wearing a helmet can even lead to suspension of license. The Motor Vehicle Bill proposes stringent changes in laws and fines for road and vehicular safety. This bill shall benefit Studds Accessories Ltd and other helmet manufacturer.

Thus based on strong fundamental growth prospective of the company, expansion plan (Geographically and product base), Upcoming IPO and strong support from government, we shall recommend – “Buy- Studds Accessories Ltd”

Read In Detail – Studds Accessories Ltd|

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