Stanley Lifestyle IPO Review 2024

adminJune 20, 2024

Stanley Lifestyle IPO Review: Stanley Lifestyles Limited is preparing for an initial public offering (IPO). The IPO will open for subscription on June 21, 2024 and will close on June 25, 2024. In this article, we look at Stanley Lifestyles IPO Review 2024 and analyze its strengths, weaknesses, financials, and GMP. Read on to find out!

Stanley Lifestyles IPO Review – About Us

stanley lifestyle It is a furniture manufacturer and retailer founded in 2007. The company specializes in the super premium segment and has a furniture brand called “Stanley” in India.

They are involved in manufacturing and retail operations, offering products in different price segments such as super premium, luxury and ultra luxury. The company’s promoters initially offered car seat leather services before shifting to luxury furniture retailing.

Home Solutions, also part of Stanley Lifestyle, offers a wide range of products including sofas, kitchen cabinets, armchairs, mattresses, beds and a variety of case products such as coffee tables and dining tables.

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The company operates under Company Owned and Company Operated (COCO) and Franchise Owned and Franchise Operated (FOFO) models and has a pan-India presence.

The company offers its products under the brands “Sofas & More by Stanley”, “Stanley Level Next”, and “Stanley Boutique”. Stanley has offices in major cities such as New Delhi, Chennai, Mumbai, Bengaluru and Hyderabad. They operate 38 COCO stores and 24 FOFO stores across 21 states and Union Territories of India.

Stanley Lifestyles IPO Review – Industry Overview

As India’s economy has grown over the past decade, a new middle class has emerged seeking luxury and luxury homes. Increasing demand for homes, interior design services, furniture alternatives, renovations, and changing housing trends all contribute to the growth of the furniture market. real estate sector.

The growth of the Indian real estate sector has led to rapid expansion of the furniture market in India. By fiscal 2027, the organized market is expected to account for 35% of the total market share, outpacing the traditional market at an annual growth rate of 36%.

Stanley Lifestyles IPO Review – Financial Highlights

If we look at Stanley Lifestyles’ financials, we can see that its operating revenue increased from ₹195.78 crores in FY21 to ₹418.99 crores in FY23. This has resulted in the company growing its revenue at a CAGR of 46.29% over the aforementioned period.

The increase in operating revenue is accompanied by an increase in profit from ₹1.92 crores in March 2021 to ₹34.97 crores in March 2023. Additionally, the company’s profit margin increased from 0.98% in FY21 to 8.35% in FY23. This brings the company’s profit CAGR to a whopping 326.48% from FY21 to FY23.

As of nine months ended FY24, the company had earned a revenue of ₹313.31 crores and maintained a profit of ₹18.69 crores.

As of FY23, the company reported 16.29% and RoCE of 16.63%, indicating good return on shareholder capital and average efficiency in resource utilization.

Additionally, the company’s debt-to-equity ratio is 0.86, meaning that most of the company has been operating with its own funds.

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Stanley Lifestyles Limited is one of the few Indian companies that is present across multiple price bands, i.e. super premium, luxury and ultra luxury segments, through various brands.

According to a RedSeer report, as of January 31, 2024, the company’s retail footprint in India was three times the size of its nearest competitor in the luxury/super premium furniture industry.

Given the company’s manufacturing and retail scale, there is no directly listed company in India or internationally that can compare to its business model.

Company Strengths

The company is one of India’s leading premium and luxury consumer brands and excels in manufacturing and retail operations. It is the fastest growing brand in the furniture category with the largest number of stores.
The company aims to establish itself as a one-stop destination for customers by offering a wide range of home furnishing products.
The company has a wide pan-India retail presence across multiple store formats, enabling it to target diverse markets to enhance brand visibility.
The company regularly updates its product range to keep it relevant and high quality. This ensures that our product catalog is kept fresh, up-to-date and aligned with current customer preferences and market trends.
The company has implemented a vertically integrated model to control the process from raw material procurement to retail. This ensures that our design and manufacturing capabilities deliver high-quality products that stand out in the market.

company’s weaknesses

The company provides a warranty for the products sold. If product warranty obligations exceed the Company’s reserves, this could have a negative impact on our business.
This business involves longer inventory periods and extended cash conversion cycles, which may increase carrying costs and impact liquidity, which could impact our financial performance and cash flows.
Companies face risks from fluctuations. forex Exchange rate fluctuations resulting from foreign currency transactions may have a negative impact on our operating performance.
The Company’s insurance coverage may not be sufficient to compensate for any losses or liabilities. This could have a negative impact on our financial condition and results of operations if we incur large uninsured losses or if our insured losses significantly exceed our insurance coverage.
The company’s success depends on uninterrupted supply of a variety of raw materials from its suppliers. Any disruption in this supply could have a negative impact on the Company’s operations.

Stanley Lifestyle IPO Review – GMP

Shares of Stanley Lifestyles Limited were trading at a premium of 42.82% in the gray market on June 20, 2024. The stock was lagging at Rs.547. This is a premium of Rs 158 per share to the ceiling price of Rs 369.