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

Knowledge Jazz

20 Jun 202410:43

Summary

TLDRIn 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.

Outlines

00:00

🛋️ Introduction to Lifestyle Limited IPO Review

The video script begins with an introduction to an upcoming IPO for Lifestyle Limited, which is set to be open from June 21 to June 25. The company, known for its furniture manufacturing, particularly in the premium and ultra-luxury segments, is expected to attract investors. The script outlines the plan to review the IPO in detail, starting with the grey market premium, company details, financials, and fundamentals, and ending with a recommendation on whether to apply for the IPO. The company's background, product offerings, and market presence are also discussed, including its unique designs and expansion across multiple cities and states in India.

05:01

📈 Financial Analysis and IPO Details of Lifestyle Limited

This paragraph delves into the financial performance of Lifestyle Limited, highlighting its growth in assets, revenue, and profits from 2021 to 2023. The company's profit margins have improved, and its net worth has increased annually. The script mentions the company's reserves and current assets, indicating a strong financial position. The IPO details are also discussed, including the price band, issue size, and the company's valuation compared to its listed competitors. The video aims to provide clarity on whether the IPO is a good investment opportunity, considering both short-term listing gains and long-term prospects.

10:01

🏢 Market Sentiment and Final Thoughts on Lifestyle Limited's IPO

The final paragraph addresses the market sentiment and factors to consider before applying for Lifestyle Limited's IPO. It emphasizes the importance of gauging market demand and the company's potential for growth. The script points out the positive aspects, such as the company's presence in a demanding sector and its financial health, as well as potential risks, including the concentration of revenue in specific segments and regions. The video concludes with advice on waiting for market sentiment and subscription details before making an investment decision, ensuring that viewers have a clear understanding of the IPO's prospects.

Mindmap

Keywords

💡IPO

An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time. In the video, the speaker discusses the upcoming IPO of Stanley Lifestyle Limited, explaining the details, financial health, and investment potential.

💡Stanley Lifestyle Limited

Stanley Lifestyle Limited is a company that manufactures luxury and ultra-luxury furniture. The video provides a comprehensive review of the company's IPO, its market position, and its financial performance from 2021 to 2023.

💡Grey Market Premium (GMP)

Grey Market Premium refers to the price at which IPO shares are traded in the unofficial market before they are listed on the stock exchange. The video mentions the GMP to give viewers an idea of potential listing gains.

💡Luxury Furniture

Luxury furniture refers to high-end, often expensive, furniture pieces designed with premium materials and unique designs. Stanley Lifestyle Limited focuses on this market segment, manufacturing items like sofas, chairs, and beds.

💡Financials and Fundamentals

This term encompasses a company's financial health and underlying economic factors. The video delves into Stanley Lifestyle Limited's assets, revenues, profits, and debt levels to assess its overall financial stability and investment potential.

💡Listing Gains

Listing gains are the profits investors make from selling shares at a higher price than the IPO price on the day the shares are listed. The speaker discusses whether investing in the Stanley Lifestyle IPO for listing gains is advisable based on current GMP.

💡Market Segment

A market segment is a specific group of consumers targeted by a company. Stanley Lifestyle Limited targets the luxury and ultra-luxury furniture market, which is characterized by high spending customers who prioritize unique and premium designs.

💡Retail Portion

The retail portion in an IPO refers to the percentage of shares allocated to retail investors. In Stanley Lifestyle Limited's IPO, 35% of the shares are reserved for retail investors, as discussed in the video.

💡Anchor List

The anchor list includes institutional investors who commit to buying a significant portion of the IPO before it opens to the public. The video mentions waiting for the anchor list to gauge the IPO's potential success.

💡Valuation

Valuation is the process of determining the present value of a company. The video examines whether Stanley Lifestyle Limited's IPO is fairly priced by comparing its price-to-earnings ratio and other financial metrics.

Highlights

Review of an upcoming IPO by Stanley Lifestyle Limited, opening between June 21 and June 25.

The company specializes in premium and ultra-luxury furniture manufacturing.

Stanley Lifestyle Limited operates under the brand name 'Stanley', selling its products.

The company's unique designs are created in collaboration with architects and engineers before manufacturing.

Stanley offers a wide range of furniture including sofas, chairs, beds, tables, and kitchen cabinets.

The company has 62 showrooms spread across 21 cities in India with a significant presence in the south region.

Majority of the revenue comes from Karnataka, indicating a strong market presence in the south.

The company is the fourth largest in the home furniture segment in India, among unlisted companies.

Financials show consistent growth in assets and revenue, doubling from 2011 to 2023.

Profit margins have improved significantly, from under 1% in FY21 to around 8-85% in FY23.

The IPO is priced between ₹351 to ₹69 per share, with a total issue size of ₹5537 crore.

The company has a strong cash reserve and increasing current assets, indicating good financial health.

IPO details include a fresh issue of ₹200 crore and a retail portion of 35%.

The company's growth potential is discussed, considering the furniture segment as a demanding sector.

The risks and challenges include a heavy reliance on the south region and the middle-class market.

The company's expansion strategy and market coverage are evaluated as positive aspects.

The decision to apply for the IPO should be based on market sentiment and the company's long-term prospects.