Shares of this small-cap company, which manufactures and sells luxury furniture, rose nearly 7 percent after ace investor Mukul Agrawal bought a 1.58 percent stake in the company in Q2FY25.
Share price variations:
With a market capitalization of Rs. 2,868.82 crores, Stanley Lifestyles Ltd. rose to an intraday high of Rs. 519.25 representing a 6.76 percent increase from its previous closing price of Rs. 486.35 per share.
Reason for the Rise:
According to NSE’s shareholding data, ace investor Mukul Agrawal holds a 1.58% stake in Stanley Lifestyles Ltd, equivalent to 9 lakh equity shares as of Q2 FY25. As of Q2 FY25, the promoters hold 56.81% of the company, while the public holds 43.19%, with no changes from previous quarters.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 8.57 percent to Rs. 3.8 crores compared to Rs. 3.5 crores in Q1FY24, while revenue from operations also marked an increase of 5 percent to Rs. 100.7 crores from Rs. 95.9 crores in comparison to the same period.
In FY24 the company has an ROE of 12.56 percent and an ROCE of 14.63 percent. The company is a recent entrant to the stock market, having been listed on the exchanges on June 28, 2024, for Rs. 499, reflecting a 35 percent premium over its issue price of Rs. 369 per share.
Business Segment:
Stanley operates three types of stores: Stanley Next Level, where it manufactures and sells ultra-luxury products priced above Rs. 5 lakhs; Stanley Boutique, offering products in the Rs. 3 lakhs to Rs. 5 lakhs range; and Stanley Sofas & More, which features items priced between Rs. 1.5 lakhs and Rs. 3 lakhs.
The company also engages in contract manufacturing for various multinational home furnishing brands. Recently, it received a Rs. 2.27 crore order from Bangalore International Airport Limited for the reupholstery of lifestyle seating at T2.
The company has nine Stanley Next Level stores, 14 Stanley Boutique stores, 39 Sofas, and more by Stanley stores.
About the company:
Founded in 2007, Stanley Lifestyles Limited designs and manufactures super-premium, luxury, and ultra-luxury furniture and sells it through its brand Stanley.
As of Q1 FY25, revenue contribution by product categories stands as follows: 51 percent from seating, 18 percent from case goods, 13 percent from leather automotive interiors, 9 percent from kitchen & cabinetry, 5 percent from beds & mattresses, and 4 percent from automotive & others.
The company operates 62 stores across various segments under both company-owned and franchise models. It has two manufacturing units in Karnataka, covering over 3,00,886 sq. ft.
Written By Joseph Pv
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