Stanley Lifestyles share price dips after strong debut on Dalal Street. Buy, sell or hold?

Stanley Lifestyles shares had a strong debut on Dalal Street, opening at ₹499 on BSE and ₹494.95 on NSE, delivering a substantial 35 percent listing gain to the lucky allottees. However, the stock failed to sustain these levels, and profit booking was soon triggered. This profit booking was largely due to market correction, overvaluation, or profit-taking, which are common occurrences in the stock market. The share price made an intraday low of ₹482.50 on NSE and a similar low on BSE within a few minutes of listing.

Stanley Lifestyle share price outlook

Stanley Lifestyles' share price outlook is promising. Akriti Mehrotra, Research Analyst at StoxBox, highlighted the company's impressive financial performance. She stated, "Stanley has shown a remarkable 46% revenue growth, primarily fueled by its premium offerings for high-end consumers. The company's EBITDA margin has improved from 15.2% in FY21 to 19.7% in FY23, with ROCE rising from 5.5% to 16.6% and ROE from 1.0% to 16.3% during the same period. Given Stanley's robust financial performance and the potential of its market, investors who have been allotted shares are advised to consider holding onto their investment."

The positive outlook for Stanley Lifestyles is supported by the company's strategic initiatives. These include expansion plans, product diversification, and market penetration, all of which have the potential to significantly impact the share price. The company's ability to capitalize on the growing consumer demand for quality and stylish home furnishings further strengthens its position in the market.

Advising Stanley Lifestyle shareholders to book profit, Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, said, "Stanley Lifestyles Limited is widely recognized as "Stanley" in into designing and manufacturing super-premium, luxury and ultra-luxury furniture. The company is among the top players in high-end, luxurious furniture. After a setback in FY21, it marked steady growth in its top and bottom lines between FY22 and FY23. Post listing, we advise investors to book profits."

Unveiling the investment strategy post-listing of Stanley Lifestyles shares, VLA Ambala, a SEBI-registered Research Analyst and Founder of Stock Market Today, said, “I suggest pulling out the invested amount and keeping the profit invested to tap into the growth potential of the lifestyle premiumization business category.”

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.