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Stanley Lifestyles: A Detailed Look at its Market Debut

Published 23-06-2024, 01:58 pm
© Reuters.

Stanley Lifestyles Ltd. (SLL) began its journey by offering car seat leather upholstery services to major global automotive brands before transitioning into retailing luxury furniture in India. Today, SLL stands as a prominent super-premium and luxury furniture brand in the country, known for its extensive manufacturing and retail operations

SLL is currently the fourth largest player in the Indian home furniture segment by revenue for Fiscal 2023. Notably, SLL was among the first Indian companies to enter the super-premium and luxury furniture market, and it remains one of the few Indian firms operating across a range of price points—from super-premium to ultra-luxury.

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The company's products are marketed under the "Stanley" brand, which has gained recognition and customer loyalty through quality offerings and targeted marketing campaigns like "Beautiful Living" and "Luxury Unlimited." SLL's strategy revolves around turning customers into brand ambassadors through positive testimonials and word-of-mouth advertising.

SLL prides itself on offering bespoke products, leveraging the craftsmanship of its skilled employees. The company's operations encompass various processes, including leather marking, cutting, carpentry, sewing, stitching, metalwork, and polishing. As of December 31, 2023, SLL had 58 craftsmen dedicated to new product development, highlighting its commitment to blending unique manufacturing techniques with contemporary design.

In Fiscal 2023, SLL designed and manufactured 88 new products, adding another 71 new products in the nine months ending December 31, 2023. The company operated 62 stores across 25 cities, employing 778 permanent staff and 693 contract laborers as of the same date.

SLL is launching its maiden IPO, comprising a fresh equity issue worth INR 200 crore and an Offer for Sale (OFS) of 9,133,454 equity shares, totaling INR 537.02 crore. The price band is set at INR 351 - INR 369 per share, with the issue opening on June 21, 2024, and closing on June 25, 2024. The minimum application is for 40 shares. Post-IPO, the shares will be listed on BSE and NSE.

The net proceeds from the fresh equity issue will fund investments in subsidiaries (INR 140.16 crore), capital expenditure (INR 6.66 crore), and general corporate purposes. The IPO represents 25.53% of the post-IPO paid-up equity capital.

SLL has shown steady growth over the past three fiscal years. For FY21, FY22, and FY23, the company reported total incomes of INR 201.71 crore, INR 297.76 crore, and INR 425.62 crore, respectively, with corresponding net profits of INR 1.92 crore, INR 23.22 crore, and INR 34.98 crore. For the nine months ending December 31, 2023, SLL recorded a net profit of INR 18.70 crore on a total income of INR 322.29 crore.

The company has a history of dividend payments, reflecting its profitability and commitment to shareholder returns.

Stanley Lifestyles Ltd. is a significant player in the premium-luxury furniture market with a proven growth trajectory. However, the IPO is priced aggressively, suggesting potential caution for investors. Well-informed and cash-rich investors might consider this offering for long-term gains, given the company’s strong market position and steady financial performance.

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