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Check Before You Invest : Studds Accessories Ltd

BSE: 544599 NSE: STUDDS ISIN: INE00Q601028
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Studds Accessories Ltd belong to?
Studds Accessories Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Studds Accessories Ltd a good quality company?
Studds Accessories Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Studds Accessories Ltd undervalued or overvalued?
Studds Accessories Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 25.96 -
Price to Book 3.65 -
Price to Sales 3.15 -
EV to EBITDA 14.77 -
Q.4 Is Studds Accessories Ltd a good buy now?
Studds Accessories Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Studds Accessories Ltd?
Studds Accessories Ltd revenue growth is 10.1% for FY-2025, which is above its 5-year CAGR of 7.04%, indicating faster growth.

Q.2 Gross Profit margin of Studds Accessories Ltd?
Studds Accessories Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.5% for FY-2025, which is above its 5-year median of 17.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Studds Accessories Ltd?
Studds Accessories Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.19% for FY-2025, which is above its 5-year median of 17.21% indicating increasing margins.

Q.4 Net Profit Margin of Studds Accessories Ltd?
Studds Accessories Ltd Net Profit Margin is 12.15% for FY-2025, is above its 5-year median of 10.82%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 19.5 17.4
Operating Profit Margin (%) 18.19 17.21
Net Profit Margin (%) 12.15 10.82

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Studds Accessories Ltd?
Studds Accessories Ltd Return on Asset is 13.61%, which is above its 5-year historical median of 12.09%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Studds Accessories Ltd?
Studds Accessories Ltd Return on capital employed is 23.24% for FY-2025, which is above its 5-year historical median of 20.65%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Studds Accessories Ltd?
Studds Accessories Ltd Return on equity is 16.9% for FY-2025, which is above its 5-year historical median of 15.78%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Studds Accessories Ltd?
Studds Accessories Ltd Cash conversion cycle is 28 days, above its 5-year historical median of 13 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.15 1.15
ROE (%) 16.9 15.78
ROCE (%) 23.24 20.65
Cash Conversion Cycle 28 days 13 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Studds Accessories Ltd?
Studds Accessories Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.40, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Studds Accessories Ltd?
Studds Accessories Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Studds Accessories Ltd?

Q.1 Promoter shareholding and pledge status of Studds Accessories Ltd?
Promoters hold 61.75% of the Studds Accessories Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Studds Accessories Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Studds Accessories Ltd vs industry peers?
Studds Accessories Ltd revenue CAGR is 7.04%, compared to the industry median CAGR of 11.89%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 10.1 11.9
Gross Profit Growth (%) 23.2 16.2
Operating Profit Growth (%) 17.8 14.7
Net Profit Growth (%) 24.6 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.15 1.24
ROE (%) 16.9 11.65
ROCE (%) 23.24 13.5
Cash Conversion Cycle (days) 27.51 46

Valuation & price assessment

Q.1 Stock return of Studds Accessories Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Studds Accessories Ltd vs historical?
The current P/E ratio of 25.96 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 25.96 - 28.71
Price to Book 3.65 - 2.99
Price to Sales 3.15 - 1.35
EV to EBITDA 14.77 - 11.85

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