STANLEY LIFESTYLES IPO Review

STANLEY LIFESTYLES LIMITED, is a super-premium and luxury furniture brand in India and among the few home-grown super-premium and luxury consumer brands in India operating at scale in terms of manufacturing as well as retail operations.

The Promoters of the company are Sunil Suresh and Shubha Sunil, who has experience of more than 16 years in the business of manufacturing car seat leather upholstery. 

Financially, Stanley Lifestyles revenue increased from ₹2,017.11 Millions in FY21 to ₹2,977.55 Millions in FY22 and further revenue jumped to ₹4,256.22 Millions in FY23 and currently at ₹3,222.92 Millions for 9MFY24. Similarly, EBITDA increased from ₹297.75 Millions in FY21 to ₹590.08 Millions in FY22 and further to ₹827.17 Millions in FY23 and currently at ₹577.65 Millions in 9MFY24. The PAT of ₹23.50 Millions in FY21 jumped to ₹237.00 Millions profit in FY22 and further increased to ₹351.44 Millions in FY23 and currently at ₹184.99 Millions for 9MFY24. This indicate steady financial performance.

For the Stanley Lifestyles IPO, the company is issuing shares at a pre-issue EPS of ₹6.37 and a post-issue EPS of ₹6.16. The pre-issue P/E ratio is 57.92x, while the post-issue P/E ratio is 59.90x against the Decor and laminates industry P/E ratio of 33x. The company's ROCE for 9MFY24 is 8.63%, and ROE for 9MFY24 is 7.92%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) indicates potential listing gains of 25% - 30%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to apply to the IPO for listing gains or long term Investment purposes.