The stunning growth in the automobile industry is not hidden from anyone, and it further gave way to the booming Indian two-wheeler helmet industry at a steady rate. Speaking of helmets, the first name that pops to mind is Studds Accessories Limited. Established in 1983, Studds Accessories Limited is India's largest manufacturer of helmets and other two-wheeler accessories.
Further, the company serves 39 nations and aims to grow more through its innovative products. Today, the company owns more than 26% of the total market share in India. The stunning growth over the years has lured investors towards Studds Accessories Limited unlisted stocks. Investing in Studds Accessories Limited seems to be a wise choice, here's why.
6 Reasons To Invest In Studds Accessories Limited Unlisted Shares
With a net worth of ₹310.8 crores and a profit margin of 5.98%, investing in Studds Accessories Limited unlisted shares is a great opportunity. However, the profit margin and revenue of the company are not the only reasons to invest in Studds Accessories Limited unlisted shares. Mentioned below are six reasons you buy unlisted shares of the company.
1. Management Is Experienced
Experienced management can take the company to great heights by planning protective strategies to break through any downfall. The same is the case with Studds. With Mrs Madhu Khurana as Chairman and Managing Director, the company has already seen much and is anticipated to boom further. He has approximately four decades of experience in the helmet industry. Assisted by his son, Mr Sidhartha Khurana (two decades of experience), Madhu is in charge of the company's overall operations. When the company is backed by such experienced management, investing in Studds Accessories Limited unlisted shares can never go wrong.
2. Dominant In The Market With A Long Success Record
Studds has been ruling the helmet manufacturing industry for more than three decades. With more than 1.3 crore helmets per year, Studds Accessories Limited bagged the largest capacity as of 31 December 2021. Apart from helmets, the company has also stretched itself into manufacturing coats, gloves, luggage boxes, face shields, visors, and other accessories. All the products sold by the company are only going to increase in demand since the automobile industry is expanding, and safety is a must. With so much potential to grow, Studds Accessories Limited unlisted share price will also soar, giving great returns to investors.
3. Renowned Clientele, Soaring Exports, & Sales Channel Diversification
Over the years, the company has gained a renowned clientele. The firm mostly sells through dealers, OEMs, its website, and government canteens. Moreover, Studds has a long history of dealing with Indian merchants and OEMs. Even during 2021, when the whole world stopped, and the market was experiencing its biggest downfall, Studds broke through the situation and gained a net worth of ₹290 crores. By the end of the fiscal year 2022, Studds is expected to reach double its revenue, i.e., approximately ₹100 crores.
4. Exceptional Growing Scale & Profit Margin With Some Moderation
In nine months in the fiscal year 2022, Studds Accessories Limited reported an income of ₹337 crores. The company further boosted its selling price by 6% to offset substantial growth. Though the sales were below the margin in the previous years, the company is anticipated to reclaim its operating margin as the revenue is expected to grow by 20% in the financial year 2023. The growing numbers are promising enough to attract experienced and newer investors; Studds Accessories Limited unlisted shares can be your best bet to gain massive returns.
5. Debt Coverage Is High With A Comfortable Capital Structure
Even after all the market fluctuations, the company's capital structure remained healthy. The company's debt coverage is also high, backed by a net worth of ₹289 crores and minimal reliance on borrowing. Moreover, Studds has liquid investments, cash and a bank balance that total up to ₹74 crores. The debt levels are low with healthy profitability, further resulting in Total Debt/PBILDT of 0.40 times and interest coverage of more than 30 times. Since the debts are low and profitability is high, investing in Studds Accessories Limited seems a wise choice.
6. Well Managed Cycle Of Operations
The credit period for Studds is around seven days for dealers and 30-60 days for OEMs. Further, institutional orders and online sales are paid in advance, and payments from government canteens are settled within 60-90 days. Since the cycle of operations is well managed, the sales are carried out smoothly.So, if you are willing to buy Studds unlisted shares, Stockify can be your trusted partner as we offer all the details, such as key indicators, EBIDTA score, etc., necessary for our investing.
