Recent Price Movements and Market Context
On 25 Feb 2026, Stanley Lifestyles Ltd’s share price fell by 0.81%, closing at Rs.166.6, which is the lowest level ever recorded for the company. This decline occurred despite the stock outperforming its sector by 0.66% on the same day. The stock has been on a downward trajectory for two consecutive days, resulting in a cumulative loss of 4.06% over this short span.
Comparing the stock’s performance against the Sensex reveals a stark contrast. While the Sensex gained 0.11% on the day, Stanley Lifestyles declined. Over longer periods, the disparity widens: the stock has lost 7.29% in the past week versus a 1.69% decline in the Sensex, and over one month, it has fallen 5.41% while the Sensex gained 0.96%. The three-month performance is particularly notable, with the stock plunging 25.99% against the Sensex’s modest 2.68% decline.
Year-to-date, Stanley Lifestyles has declined 13.97%, significantly underperforming the Sensex’s 3.41% fall. Over the last year, the stock’s return stands at a negative 40.50%, while the Sensex has appreciated by 10.34%. The stock’s three- and five-year returns remain at zero, indicating no capital appreciation over these periods, in stark contrast to the Sensex’s 38.43% and 61.28% gains respectively. Over a decade, the Sensex has surged 258.27%, underscoring the stock’s relative stagnation.
Technical Indicators and Moving Averages
Stanley Lifestyles is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning signals a persistent bearish trend, with no immediate signs of reversal. The stock’s inability to breach these resistance levels further emphasises the downward momentum.
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Fundamental Performance and Financial Metrics
The company’s fundamental indicators paint a challenging picture. Stanley Lifestyles has experienced a compound annual growth rate (CAGR) decline of 17.16% in operating profits over the past five years, reflecting weakening core earnings capacity. This deterioration in profitability is further highlighted by the company’s average Return on Equity (ROE) of 6.98%, which indicates modest returns generated on shareholders’ funds.
Debt servicing capacity remains constrained, with an average EBIT to interest coverage ratio of 1.91, signalling limited buffer to meet interest obligations comfortably. The latest quarterly data reveals an operating profit to interest ratio of just 1.88 times, the lowest recorded, underscoring the pressure on earnings to cover financing costs.
Net sales have declined by 1.52%, contributing to the company’s declaration of very negative results in December 2025. The firm has reported negative earnings for two consecutive quarters, with the latest quarterly profit after tax (PAT) at zero, representing a 100% fall compared to the previous four-quarter average. Interest expenses have surged by 58.24% over the last six months, reaching Rs.14.40 crores, further straining profitability.
Long-Term and Recent Returns Analysis
Stanley Lifestyles’ stock has underperformed not only the Sensex but also the BSE500 index over multiple time horizons. The one-year return of -40.50% starkly contrasts with the Sensex’s 10.34% gain, while the three-month return of -25.99% far exceeds the Sensex’s 2.68% decline. The absence of any capital appreciation over three and five years further emphasises the company’s subdued market performance.
Profitability trends mirror this underperformance, with profits falling by 3% over the past year. Despite these challenges, the company’s Return on Capital Employed (ROCE) stands at 5.7%, and it maintains a relatively attractive valuation with an enterprise value to capital employed ratio of 1.7. The stock currently trades at a discount compared to its peers’ historical valuations, reflecting market caution.
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Mojo Score and Market Capitalisation Assessment
Stanley Lifestyles holds a Mojo Score of 15.0, categorised as a Strong Sell, an upgrade from its previous Sell rating as of 1 July 2025. This rating reflects the company’s weak long-term fundamentals and deteriorating financial health. The market capitalisation grade stands at 4, indicating a relatively small market cap within its sector.
The stock’s recent day change of -0.81% aligns with the broader negative sentiment, while its consistent underperformance against the Sensex and sector benchmarks highlights the severity of its current position.
Summary of Key Financial and Market Indicators
Stanley Lifestyles Ltd’s stock has reached an unprecedented low of Rs.166.6, driven by sustained declines in profitability, sales, and returns. The company’s financial ratios, including low ROE, weak interest coverage, and negative quarterly earnings, underscore the challenges faced. Despite a valuation that appears attractive relative to peers, the stock’s performance over multiple time frames remains subdued.
Trading below all major moving averages and with a Strong Sell Mojo Grade, the stock’s current status reflects a difficult phase within the Furniture and Home Furnishing sector. Investors and market participants continue to monitor the company’s financial disclosures and market movements closely.
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