Stanley marks smart debut

about 21 days ago
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A new listing today –Stanley Lifestyles. As against the IPO price of Rs.369, it got listed at Rs.499, went up to Rs.510 and is now trading at Rs.487 levels.

The IPO had got a good response as it’s a well-known brand and that equity helped garner more money. The issue was overall subscribed 99x of which QIBs portion was highest at 222x, HNIs at 118x and Retail at 17.8x.

The company is a home-grown manufacturer and retailer of super-premium and luxury furniture, with integrated operations. It has 2 manufacturing plants in Bengaluru and 62 retail stores under brands ‘Stanley Level Next’, ‘Stanley Boutique’ and ‘Sofas & More by Stanley’. Of these stores, 38 are company-owned and company-operated, contributing to 2/3rd of Rs. 420 cr annual revenue. Geographically, 60% revenue is from Karnataka, 11% each from Telangana and Maharashtra and 5% from Delhi. Also, nearly 1/4th revenue comes from non-furniture B2C retailing, such as contract manufacturing, B2B sales for airports/hospitals, automotive seating covers.

Our conclusion - While medium-term growth visibility exists, 9MFY24 financial performance does not instil confidence. It is better to monitor financial performance post listing and for now, one can skip the IPO.

585.55 (-6.95)

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