Shares of Studds Accessories surged nearly 17% on Tuesday, marking their sharpest intraday gain since listing, after an Economic Times report highlighted a sharp rise in helmet sales following stricter enforcement of traffic rules by the newly elected BJP government.The stock climbed to an intraday high of Rs 513.50, its highest level since March 18.The BJP secured a historic victory in the West Bengal Assembly elections in May, winning 207 of 294 seats and ending the Mamata Banerjee-led TMC's 15-year rule in the state.State cabinet minister Ashok Kirtania told ET that police have been instructed to prosecute all helmet-rule violators, with an exemption for Sikhs on religious grounds. “This is an outcome of the government's focus on people's safety…We believe in Prime Minister Narendra Modi's vision of ‘sab ka sath, sab ka vikas’ (development for all) and also ‘sab ka suraksha’ (safety),” he said.
As a result, Studds Accessories, which is one of India’s largest helmet manufacturers, posted a record 70% volume sales growth in West Bengal in May.
According to Studds sales data, while kids' helmet demand was concentrated only in Kolkata before, it is now emerging from Tier II cities and towns such as Murshidabad, Malda, Medinipur, Krishnanagar, Asansol, Burdwan, Bankura, Siliguri, and Jalpaiguri.
