Studds Accessories Limited

Consumer Cyclical — Auto Parts · NSE

₹404.00−₹6.15 (−1.50%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Studds Accessories Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Studds Accessories Limited engages in the designing, manufacturing, marketing, and sale of helmets and riding accessories in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees1,040

Annual revenue₹634 Cr

How does it make money?

Turns over ₹634 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 1,040 employees supports ₹61.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹61.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 20.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE23.0%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 17.1% and earnings to grow about 60.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.1%

Est. earnings growth+60.0%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 1 years revenue moved +9% while net margin moved +9% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+9%

Margin effect+9%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

77/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

21.3x

1.1Y Median

25.9x

13 monthly readings · mean 25.2x · range 18.8x–30.9x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 18% below its 1.1y median of 25.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 53% below the peer median of 45.7x.

vs. its own history

Fair

25.9x median over 13 months · -18%

vs. sector peers

Cheap

45.7x median of 4 peers · -53%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.4x

PEG

1.14

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 12% over 1 years.
Cash generation is improving
Free cash flow is up 88% over 1 years.
High return on capital employed
ROCE of 20.4% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 1.56x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 53% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.56x. Interest is payable whether or not the business has a good year.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 19%✓ 21.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 8.6% CAGR
Latest reported year was 13.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹39 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹1,590 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.3x

Fair

Fairly valued against the generic band

P/B Ratio

3.04x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.98

Profitable

Profitable on a per-share basis

ROE

15.8%

Strong

Strong capital efficiency

ROCE

20.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.56x

High

High leverage

Revenue Growth (YoY)

13.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-39.3%

Falling

Profits are shrinking

Dividend Yield

0.74%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹39 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

14.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.3%

Average

Average margins

Net Margin

11.4%

Good

Strong bottom-line conversion

Current Ratio

2.70

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

410.8 / 424.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.0

Neutral momentum

Financial Trend (2-Year)

Metric	FY25	FY26	1Y CAGR
Revenue	₹584 Cr	₹634 Cr	+8.6%
EBITDA	₹117 Cr	₹134 Cr	+14.9%
EBITDA Margin	20.0%	21.2%	—
PAT (Net Profit)	₹70 Cr	₹83 Cr	+18.7%
EPS	₹17.7	₹21	+18.7%
ROE	15.5%	15.8%	—
ROCE	19.9%	20.4%	—
Total Debt	₹9 Cr	₹8 Cr	-12.2%
Free Cash Flow	₹21 Cr	₹39 Cr	+88.2%

🟢 Revenue has grown at 8.6% a year over 1 years.

🟢 EBITDA has grown at 14.9% a year over 1 years.

🟢 EBITDA Margin has risen from 20.0% to 21.2% over 1 years (+1.2 pts).

🟢 PAT (Net Profit) has grown at 18.7% a year over 1 years.

🟢 EPS has grown at 18.7% a year over 1 years.

🟡 ROE has held roughly flat at 15.8% over 1 years.

🟡 ROCE has held roughly flat at 20.4% over 1 years.

🟢 Total Debt has shrunk at 12.2% a year over 1 years.

🟢 Free Cash Flow has grown at 88.2% a year over 1 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹638 Cr

Total Liabilities

₹115 Cr

Cash & Equivalents

₹70 Cr

Operating Cash Flow

₹86 Cr

Capex

-₹47 Cr

Shareholding (proxy)

Institutional Holding

7.7%

Insider Holding

63.4%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

28 Aug 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹670

+65.8% vs CMP

Target Range

₹670 – ₹670

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 mixed4 general

Studds Accessories (STUDDS) Share/Stock Price Live, NSE

TechGraph, 12 Oct

Studds Accessories vs Nifty 50: 6M Return -8.51% vs -6.36%

Univest, 12 Oct

Studds Accessories declines after PAT fall over 39% YoY amid elevated raw material prices

Business Standard, 10 Aug

STUDDS Stock Price and Chart — NSE:STUDDS

TradingView, 09 Jun

Studds Accessories shares rally 17% after BJP-led govt takes this step in West Bengal

The Economic Times, 09 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Studds Accessories share price jumps 17% on strong buying interest; check factors fuelling helmet maker's stock

Upstox, 09 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑