Financials: In FY24, the company's revenue increased from INR 503 Crore in FY23 to INR 531 Crore, representing a growth of 5.6%. However, Profit After Tax (PAT) rose from INR 33 Crore in FY23 to INR 57 Crore in FY24, demonstrating a growth of 72.7%.
R&D and global opportunities: The company makes significant R&D investments to develop new products and technologies. Studds introduced its Smart Helmet and launched six new designs during the year. Moreover, International markets have become more accessible than ever, and the “China Plus One” strategy is generating substantial opportunities for Indian manufacturers. This shift is expected to bolster Studds’ growth targets significantly, allowing the company to capitalize on global market trends and drive its expansion further.
Concerns: Despite being the market leader in the helmet industry, the growth of the company has not been satisfactory over the past few years, other peers like vegas and steelbird has been capturing the market with abruptly. In terms of price, studds helmets are a bit more expensive than its peers.
Valuation: According to the current projections, Studds Accessories is estimated to make an profit of ₹70 crore to ₹80 crore per FY26. Applying the industry’s forward PE multiple of 30x, the estimated share price is expected to be around ₹615 per share. Stock seems to be fairly valued at current price (₹690), considering it is trading at a discount of 55% from its ATH (All Time High) of ₹1,100.(Post bonus adjusted prices)

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