Motorcycle accessory maker Studds Accessories’ shares surged 18.3% on Tuesday to hit a 13-week high after an ET report highlighted a sharp rise in helmet sales in West Bengal following stricter enforcement of traffic rules by state law enforcement authorities.
This marks the highest single-day gain for the company since listing, with shares closing at Rs 518.5 a piece. The benchmark BSE Sensex gained 0.5% at the end of Tuesday’s session.
The rally followed reports of a record 70% year-on-year sales volume growth for the company in West Bengal, an unexpected byproduct of the state's recent political transition.
The newly elected BJP government in the state has reportedly imposed stricter road-safety protocols after years of complaints over selective enforcement of these measures. As of May, over 35000 police prosecutions for helmet-related violations have taken place in Kolkata, triggering a sharp rise in demand for protective gear across the state, with children’s helmet sales rising as much as 100%.
The company believes stricter enforcement of safety norms could accelerate a broader shift towards branded helmet manufacturers.
“There is a massive shift happening from unorganised to organised and we feel that this period will kind of exaggerate the whole process. Some of the smaller players might not be able to take this hit and they might shut shop,” said managing director, Sidhartha Bhushan Khurana, during the company’s recent earnings call.
He estimated the unorganised market currently accounts for 25-30% of industry sales and could shrink to 10-15% over the next two to three years.
The company is also preparing for sustained demand growth. Studds said it is expanding production capacity by nearly a third and has guided for 17-18% revenue growth in FY27, signalling confidence that demand momentum will extend beyond isolated enforcement drives.
