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Sheela Foam Ltd.
(SFL)
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Rating:67Neutral
Price Target:
₹858.00
▲(12.48% Upside)
Action:Reiterated
Date:05/23/26
The score is driven primarily by mixed fundamentals: strong top-line growth and improving leverage are offset by 2026 margin compression and volatile cash-flow conversion. Technicals add support with a clear uptrend and positive momentum. Valuation is a headwind given the elevated P/E and no provided dividend yield.
Positive Factors
Revenue Growth & Brand Strength
Consistent, accelerating revenue—driven by branded consumer mattress and foam products—indicates durable end-market demand and scale. Persistent top-line growth improves capacity utilization, supports distribution expansion, and provides room to manage input-cost cycles while maintaining competitive position.
Negative Factors
Margin Compression
Material gross-margin compression weakens the company's earnings power and narrows cushions against raw-material inflation. If structural, sustained margin pressure will limit reinvestment, reduce cash available for deleveraging or growth, and impair long-term return on invested capital despite revenue gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Brand Strength
Consistent, accelerating revenue—driven by branded consumer mattress and foam products—indicates durable end-market demand and scale. Persistent top-line growth improves capacity utilization, supports distribution expansion, and provides room to manage input-cost cycles while maintaining competitive position.
Read all positive factors
Sheela Foam Ltd. (SFL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹85.58B
Dividend Yield0.13%
Average Volume (3M)7.88K
Price to Earnings (P/E)53.4
Beta (1Y)0.93
Revenue Growth11.10%
EPS Growth66.30%
CountryIN
Employees3,300
SectorGeneral
Sector StrengthN/A
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)14.69
Shares Outstanding109,203,316
10 Day Avg. Volume6,828
30 Day Avg. Volume7,885
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)1.56
Price to Sales (P/S)1.33
P/FCF Ratio20.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)23.75
Revenue Forecast (FY)₹43.22B
Sheela Foam Ltd. Business Overview & Revenue Model
Company Description
Sheela Foam Limited engages in the manufacture and sale of polyurethane foams and mattresses in India and internationally. The company provides various technical foams, such as automotive, reticulated, and ultraviolet stable foams. It also offers ...
How the Company Makes Money
SFL primarily makes money by manufacturing PU foam and converting it into higher-value finished and semi-finished products that it sells through multiple channels. A major revenue stream comes from branded consumer products—especially mattresses—s...
Sheela Foam Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 38.21B | 34.39B | 30.05B | 28.73B | 28.64B |
| Gross Profit | 8.48B | 12.80B | 11.43B | 10.19B | 9.25B |
| EBITDA | 3.93B | 2.50B | 4.38B | 3.81B | 3.91B |
| Net Income | 1.60B | 960.90M | 1.82B | 1.99B | 2.17B |
Balance Sheet | |||||
| Total Assets | 51.17B | 54.67B | 53.40B | 27.11B | 23.72B |
| Cash, Cash Equivalents and Short-Term Investments | 1.71B | 5.18B | 661.90M | 7.55B | 1.31B |
| Total Debt | 9.08B | 14.62B | 14.93B | 5.71B | 4.66B |
| Total Liabilities | 18.57B | 23.72B | 23.59B | 11.02B | 9.72B |
| Stockholders Equity | 32.52B | 30.35B | 29.20B | 16.00B | 13.93B |
Cash Flow | |||||
| Free Cash Flow | 2.48B | 1.33B | -19.43B | 3.90M | 336.93M |
| Operating Cash Flow | 3.81B | 2.52B | 4.06B | 2.12B | 1.97B |
| Investing Cash Flow | 2.84B | -288.20M | -22.58B | -2.68B | -3.06B |
| Financing Cash Flow | -6.75B | -2.26B | 18.54B | 561.20M | 926.84M |
Sheela Foam Ltd. Technical Analysis
Negative
762.80
Price Trends
725.79
Negative
632.21
Positive
614.01
Positive
Market Momentum
7.60
Positive
36.50
Neutral
26.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SFL, the sentiment is Negative. The current price of 762.8 is below the 20-day moving average (MA) of 768.64, above the 50-day MA of 725.79, and above the 200-day MA of 614.01, indicating a neutral trend. The MACD of 7.60 indicates Positive momentum. The RSI at 36.50 is Neutral, neither overbought nor oversold. The STOCH value of 26.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SFL.
Sheela Foam Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹26.78B | 23.21 | ― | 1.19% | 14.05% | 8.60% | |
68 Neutral | ₹167.58B | -69.39 | ― | 1.20% | 2.95% | -143.54% | |
67 Neutral | ₹85.58B | 53.36 | ― | 0.13% | 11.10% | 66.30% | |
66 Neutral | ₹86.79B | 53.64 | ― | ― | 11.17% | -1.08% | |
64 Neutral | ₹75.73B | 24.42 | ― | 0.44% | 8.77% | -8.69% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | ₹47.29B | -34.38 | ― | 1.31% | -40.93% | -164.43% |
* General Sector Average
IN:SFL
Sheela Foam Ltd.
677.20
2.26
0.34%
IN:CELLO
Cello World Limited
374.00
-193.99
-34.15%
IN:CROMPTON
Crompton Greaves Consumer Electricals Ltd.
249.65
-65.95
-20.90%
IN:EUREKAFORB
Eureka Forbes Limited
451.30
-107.40
-19.22%
IN:NILKAMAL
Nilkamal Limited
1,748.85
141.96
8.83%
IN:SYMPHONY
Symphony Limited
652.00
-298.80
-31.43%
Sheela Foam Ltd. Corporate Events
Sheela Foam posts June-quarter unaudited results with clean review
Aug 4, 2026
Sheela Foam Ltd. reported its unaudited standalone and consolidated financial results for the quarter ended 30 June 2026, following approval by its board of directors at a meeting held on 4 August 2026. The review report from MSKA Associates LLP ...
Sheela Foam Publishes AGM E-Voting Notice, Highlights Governance Compliance
Jun 21, 2026
Sheela Foam Ltd. has notified stock exchanges that it has published newspaper advertisements in Financial Express and Navakal detailing e-voting arrangements for its 54th Annual General Meeting. The disclosure confirms the company’s complian...
Sheela Foam Sets Virtual AGM, Urges Shareholders to Update KYC and Go Digital
Jun 20, 2026
Sheela Foam Ltd. has notified stock exchanges and shareholders that its 54th Annual General Meeting will be held on July 16, 2026, via video conferencing and other audio-visual means, with the Annual Report for FY 2025-26 made available through a ...
Sheela Foam Announces Exit of Three Independent Directors as Tenure Ends
Jun 6, 2026
Sheela Foam Ltd. has announced that the second consecutive terms of non-executive independent directors Som Mittal, Ravindra Dhariwal and Anil Tandon ended on 6 June 2026, following which they ceased to serve on the company’s board. Their de...
Sheela Foam Schedules One-on-One Virtual Investor Meeting for May 26
May 21, 2026
Sheela Foam Ltd. has informed the stock exchanges that its management will hold a one-on-one virtual meeting with an investor on May 26, 2026, as part of its regular investor relations activities. The company emphasized that no unpublished price-s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.