Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Studds Accessories Ltd, ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
Analyzing The Company
Company Name: Studds Accessories Ltd
Industry: Automotive components
Listing At: NSE & BSE (Mainboard)
Company Overview
STUDDS began its journey in 1983, evolving from manufacturing the first helmet in a garage to operating manufacturing facilities capable of producing 9.04 million units annually. Over the last four decades, we have continuously innovated to deliver on our promise of providing safety to two-wheeler riders worldwide.
Market Leadership
Achievements
- Largest two-wheeler helmet player in India by revenue (Fiscal 2023)
- World’s largest two-wheeler helmet player by volume sold (Fiscal 2024)
- Trusted brand established through consistent focus on safety features and quality
Global Presence
- Pan-India distribution network
- Presence in 70+ countries internationally
- Key export markets across:
- Americas
- Asia (excluding India)
- Europe
- Rest of the world
Vision
“At STUDDS, we envision a world where every rider embarks on their journey with confidence, protected by helmets that blend cutting-edge technology, unparalleled safety, and distinctive style. Our commitment is to lead the global helmet industry, ensuring that each rider, whether commuting through bustling city streets or exploring scenic routes, experiences the perfect harmony of protection and design. As we continue to innovate and expand, we aim to touch lives across continents, making safety a universal standard and a lifestyle choice.”
Mission
“A rider who is not just travelling but also carrying with them dreams, dreams which are associated with individual, their family, society and the nation. We believe that dreams inspire individuals and bring out their best. This quest to fulfil dreams of every individual motivates us to work tirelessly and deliver on quality and innovation. We at STUDDS believe that dreams differentiate the better from the best and it’s our small effort in the journey of the individuals to fulfil their dreams.”
Core Values
Safety First
- Continuous innovation in safety features
- Consistent quality improvement
- Reliability as a key brand attribute
Customer Trust
- Four decades of customer confidence
- Brand recognition built on performance
- Commitment to continued support
Innovation Excellence
- Cutting-edge technology integration
- Distinctive design and style
- Perfect harmony of protection and aesthetics
Customer Commitment
We thank our customers for their prolonged trust and assure them of our continued efforts and support in making safety a universal standard and lifestyle choice for riders across the globe.
Shariah Status
The IPO is Shariah Compliant, please see below image.
IPO Timeline (Tentative Schedule)
| IPO Open Date | Thu, Oct 30, 2025 |
| IPO Close Date | Mon, Nov 3, 2025 |
| Tentative Allotment | Tue, Nov 4, 2025 |
| Initiation of Refunds | Thu, Nov 6, 2025 |
| Credit of Shares to Demat | Thu, Nov 6, 2025 |
| Tentative Listing Date | Fri, Nov 7, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on Mon, Nov 3, 2025 |
Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 25 | ₹14,625 |
| Retail (Max) | 13 | 325 | ₹1,90,125 |
| S-HNI (Min) | 14 | 350 | ₹2,04,750 |
| S-HNI (Max) | 68 | 1,700 | ₹9,94,500 |
| B-HNI (Min) | 69 | 1,725 | ₹10,09,125 |
Financials
Studds Accessories Ltd. demonstrated robust financial growth for the year ending March 31, 2025. Total income increased by 11% to ₹595.89 crore from ₹535.84 crore in the previous year. Profit after tax (PAT) saw a significant rise of 22%, reaching ₹69.64 crore compared to ₹57.23 crore in FY2024.
This strong performance is also reflected in the company’s operational profitability, with EBITDA growing to ₹104.84 crore. The balance sheet strengthened considerably, as net worth increased to ₹449.48 crore and total assets grew to ₹556.71 crore. Notably, the company has significantly reduced its debt, with total borrowings standing at a minimal ₹2.91 crore.
Interim results for the quarter ending June 30, 2025, show a PAT of ₹20.25 crore on an income of ₹152.01 crore, indicating a solid start to the new fiscal year. (All amounts are in ₹ Crore).
KPI
| KPI | Value |
|---|---|
| ROE (Return on Equity) | 16.64% |
| ROCE (Return on Capital Employed) | 20.25% |
| Debt/Equity | -0.07 |
| RoNW (Return on Net Worth) | 15.49% |
| PAT Margin | 11.93% |
| EBITDA Margin | 17.96% |
| Price to Book Value | 5.12 |
| Market Capitalization | 2302.17 |
LINKS
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SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.