Tuesday, 17 September 2019

STUDDS ACCESSORIES LTD – FY 2019 RESULT UPDATE!!



Studds Accessories Ltd is a leading manufacturer of Helmets & 2 Wheeler accessories in India.

Studds Accessories owns two helmet plants with a capacity of 6.1 million helmets and 4.9 lakh units of two-wheeler luggage a year. It is looking to future expand the capacity to meet future demand.

Studds has opened a new Exclusive Brand Outlet (EBOs) during the year at Dehradun and is in process of opening 5 more EBOs at Rohtak, Cochin, Mumbai, Bangalore and Vijaywada. The company also plans to open 10 more such outlets across India by next year.


FINANCIAL HIGHLIGHTS: (All Fig. in Crs.)
PARTICULARS
FY 2019
FY 2018
TOTAL INCOME
397.25
341.79
PAT
41.17
32.88
EPS
20.92
16.71
EQUITY PAID UP
9.837
9.837
FACE VALUE
5
5
*On 8th 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.
* Dividend Recommended for FY 2019 – 60% i.e Rs. 3 per share.


CONCLUSION:
-Studds Accessories Ltd has 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. The funds are to be utilized for capacity expansion.

-Studds Accessories Ltd plans to add 2 more manufacturing units to meet future demands. It plans to open 10 more EBOs across India by next year.                                                          

-The Faridabad Unit IV with production capacity of 1.5 Mn. Bicycle helmets p.a. became operational in 1st Quarter of FY 2020.

-The Motor Vehicle Bill (The Motor Vehical (Amendment) Bill 2019) proposes stringent changes in laws and fines for road and vehicular safety. This shall boost the demand for helmets.

-As per a Frost & Sullivan 2018 report, the helmet market in India is estimated at Rs 1,395 crore. The domestic demand for two-wheeler helmets stood at nearly 20 million units in FY18. In terms of volumes, Studds has the largest share (25.66%), followed by Vega (11.05%) and Steelbird (10.87%).

-The unorganised segment accounted for 30% two-wheeler helmets sold in 2017-18. This is likely to fall as manufacturing, sale and use of non-ISI helmets will become a criminal offence from October. Studds holds a 27.79% market share in the premium segment, followed by global players such as LS2 (20.16%), MT (15.41%) and THH (11.26%).

Thus based on all the above pointers and a great future for the company, we strongly recommend – ‘Buy Studds Accessories Ltd”



For buying and selling any unquoted / unlisted / delisted or suspended shares in physical or demat you can reach us at Contact No.91+ 09215709100 or Email us on mittalmanish2003@gmail.com


No comments:

Post a Comment

Blogroll