Stanley Lifestyle IPO Review | Apply Or Not ?? | Jayesh Khatri

Summary

In this video, we review the upcoming IPO of Stanley Lifestyle Limited, open from June 21 to June 25. Known for its luxury furniture, Stanley Lifestyle manufactures premium and ultra-luxury furniture items. We will examine the grey market premium for listing gains, the company's details, financials, fundamentals, and competitors. We'll also discuss whether to apply for this IPO based on listing gains or long-term investment potential. Finally, we'll cover the positives and negatives of the company to help you make an informed decision.

Takeaways

• 😀 The video is a review of an upcoming IPO for Lifestyle Limited, which will be open between June 21 and June 25.
• 🏠 On hearing the name 'Lifestyle,' one might immediately think of fashion brands, but in this context, it pertains to furniture, specifically high-end and ultra-luxury furniture.
• 🛋️ The company manufactures a variety of furniture including sofas, chairs, beds, tables, and kitchen cabinets, and also caters to the automotive segment with products like car covers.
• 📈 The company has been incorporated since 2007 and operates in the furniture sector for about 17 years, showcasing a significant growth in revenue and profits year over year.
• 📊 The financials of the company show a robust growth with assets increasing annually, and profits growing from approximately 1.92 crores to 35 crores between FY21 and FY23.
• 💰 The profit margin has improved significantly, from less than 1% in FY21 to around 8-8.5% in FY23, indicating a healthy financial performance.
• 🛍️ The company has a wide retail presence with 62 showrooms spread across 21 cities in 11 states and one union territory, with a significant portion of revenue coming from Karnataka.
• 📊 The company's revenue is heavily dependent on the sofa segment, which contributes to more than 50% of the total revenue.
• 💹 There are no listed competitors in the same segment, making Lifestyle Limited one of the largest players in the home furniture segment in India.
• 💰 The IPO is priced between ₹35 and ₹69 per share, with a total issue size of ₹553.7 crores, including a fresh issue of ₹200 crores and a retail portion of 35%.
• 📅 The listing date for the shares is set for June 28, and the decision to apply for the IPO should be based on market sentiment and other factors such as the company's financials and growth prospects.

Q & A

What is the main topic of the video script?

The main topic of the video script is a review of an upcoming IPO for Stanley Lifestyle Limited, which is scheduled to be open between June 21 and June 25.

What is the primary business of Stanley Lifestyle Limited?

Stanley Lifestyle Limited is primarily involved in the manufacturing of premium and ultra-luxury furniture, including sofas, chairs, beds, tables, and other related items.

What is unique about the furniture designs of Stanley Lifestyle Limited?

The furniture designs of Stanley Lifestyle Limited are unique because they are created in collaboration with architects and engineers, ensuring a premium segment placement due to the time and cost involved in design and manufacturing.

How many showrooms does Stanley Lifestyle Limited have in India, and in how many cities and states?

Stanley Lifestyle Limited has a total of 62 showrooms spread across 21 cities in 11 states and one union territory within India.

From which region does Stanley Lifestyle Limited generate the majority of its revenue?

The majority of Stanley Lifestyle Limited's revenue, more than 60%, comes from the state of Karnataka.

What is the financial performance of Stanley Lifestyle Limited from FY21 to FY23?

From FY21 to FY23, Stanley Lifestyle Limited has shown significant growth, with revenues increasing from approximately 1.92 billion to 3.51 billion, and profits growing from around 2 million to 35 million.

What is the price band for the Stanley Lifestyle Limited IPO, and how many shares are being offered?

The price band for the Stanley Lifestyle Limited IPO is between ₹351 and ₹69 per share, with a total issue size of 55.37 crore, including a fresh issue of ₹20 crore and a retail portion of 35%.

When is the listing date for Stanley Lifestyle Limited's shares?

The listing date for Stanley Lifestyle Limited's shares is June 28.

What is the financial year considered for the financial analysis in the script?

The financial analysis in the script considers the financial years from 2021 to 2023 (FY21 to FY23).

What is the author's recommendation regarding the Stanley Lifestyle Limited IPO based on the financials and fundamentals?

The author suggests that the IPO seems reasonably priced based on the financials and fundamentals, but advises to wait for the market sentiment and subscription details before making a decision to apply for the IPO.

What are the potential risks mentioned in the script for investing in Stanley Lifestyle Limited's IPO?

The potential risks mentioned include a concentration of revenue in the south region, a limited number of high net-worth individuals (HNIs) as customers, and the company's expansion in the north of India.