Sheela Foam Ltd. (SFL) AI Stock Analysis

• Market Cap: ₹78.44B
• Dividend Yield: N/A
• Average Volume (3M): 7.72K
• Price to Earnings (P/E): 136.4
• Beta (1Y): 0.86
• Revenue Growth: 9.66%
• EPS Growth: -69.75%
• Country: IN
• Employees: 2,221
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.68
• Shares Outstanding: 108,710,780
• 10 Day Avg. Volume: 6,456
• 30 Day Avg. Volume: 7,716
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹716.00
• Price Target Upside: 2.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ₹716.00 ▲(2.72% Upside)

The overall stock score for Sheela Foam Ltd. is primarily influenced by its strong financial performance, which is offset by a high P/E ratio indicating overvaluation. Technical analysis suggests a neutral trend with limited momentum. The absence of a dividend yield further impacts the valuation negatively.

Sheela Foam Ltd. Business Overview & Revenue Model

Company Description

Sheela Foam Ltd. (SFL) is a leading manufacturer of foam-based products in India. The company operates primarily in the home comfort and technical foam sectors, offering a wide range of products including mattresses, furniture cushioning, pillows, and specialized foam products for various industrial applications. With its flagship brand, Sleepwell, SFL has established a strong presence in the Indian mattress market, catering to both residential and commercial customers.

How the Company Makes Money

Sheela Foam Ltd. generates revenue primarily through the sale of its foam-based products. The company's key revenue streams include the retail sale of mattresses and other sleep-related products under the Sleepwell brand, which are distributed through a vast network of dealers and exclusive Sleepwell stores across India. Additionally, SFL earns income from its technical foam division, which supplies specialized foam products to industries such as automotive, footwear, and packaging. Strategic partnerships with retailers and a focus on innovation and quality contribute significantly to the company's earnings, enhancing its market position and expanding its customer base.

Sheela Foam Ltd. Financial Statement Overview

Summary

Sheela Foam Ltd. demonstrates strong revenue growth and operational efficiency. The balance sheet is stable with a solid equity position, although the company could enhance its profitability and cash flow efficiency. Continued focus on improving net income and cash flow conversion will be beneficial.

Income Statement

Sheela Foam Ltd. has shown robust revenue growth with a strong increase from the previous year, driven by a solid gross profit margin of 37.2% and a good net profit margin of 2.8%. However, the net profit margin indicates some pressure on net income. The EBIT and EBITDA margins are fairly healthy, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.48, indicating manageable leverage. The return on equity is at 3.17%, showing potential for improvement. The equity ratio of 55.5% suggests a solid capital structure with a strong asset base supported by equity.

Cash Flow

The cash flow statement reveals a significant free cash flow growth, recovering from negative to positive. The operating cash flow to net income ratio is favorable, indicating effective cash conversion, but the free cash flow to net income ratio still needs improvement.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	34.39B	34.39B	30.05B	28.73B	24.34B	29.80B
Gross Profit	9.76B	12.80B	11.43B	10.19B	9.95B	10.75B
EBITDA	2.85B	2.50B	4.38B	3.81B	4.04B	3.91B
Net Income	960.90M	960.90M	1.82B	1.99B	2.38B	2.17B
Balance Sheet
Total Assets	54.67B	54.67B	53.40B	27.11B	20.76B	23.72B
Cash, Cash Equivalents and Short-Term Investments	5.18B	5.18B	661.90M	7.55B	1.65B	1.31B
Total Debt	14.62B	14.62B	14.93B	5.71B	3.49B	4.66B
Total Liabilities	23.72B	23.72B	23.59B	11.02B	8.83B	9.72B
Stockholders Equity	30.35B	30.35B	29.20B	16.00B	11.84B	13.93B
Cash Flow
Free Cash Flow	0.00	1.33B	-19.43B	3.90M	1.96B	336.93M
Operating Cash Flow	0.00	2.52B	4.06B	2.12B	2.60B	1.97B
Investing Cash Flow	0.00	-288.20M	-22.58B	-2.68B	-2.15B	-3.06B
Financing Cash Flow	0.00	-2.26B	18.54B	561.20M	-323.47M	926.84M

Sheela Foam Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 697.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SFL, the sentiment is Positive. The current price of 697.05 is above the 20-day moving average (MA) of 684.71, above the 50-day MA of 694.79, and below the 200-day MA of 763.70, indicating a neutral trend. The MACD of 7.19 indicates Negative momentum. The RSI at 66.80 is Neutral, neither overbought nor oversold. The STOCH value of 76.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SFL.

Sheela Foam Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KKCL	71 Outperform	₹32.23B	11.70		0.39%	30.23%	83.60%
GREENPLY	65 Neutral	₹38.44B	44.10		0.16%	3.83%	-15.55%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
JBMA	60 Neutral	₹146.20B	73.31		0.14%	7.18%	12.78%
SFL	60 Neutral	₹78.44B	136.39		―	9.66%	-69.75%
CENTURYPLY	57 Neutral	₹163.79B	80.78		0.14%	17.28%	-25.98%
MAHSCOOTER	―	₹177.40B	73.57		1.09%	―	―

Sheela Foam Ltd. Corporate Events

Sheela Foam Ltd. Updates Code for Fair Disclosure of UPSI

Sheela Foam Ltd. has announced an update to its Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (UPSI) as per the SEBI regulations. This move is aimed at ensuring prompt and fair public disclosure of UPSI, enhancing transparency, and maintaining investor trust. The company has appointed its Company Secretary as the Chief Investor Relations Officer to oversee the dissemination of information, ensuring that all disclosures are uniform and avoid selective sharing. This update is expected to strengthen the company’s compliance framework and improve its engagement with regulatory authorities and stakeholders.

Sheela Foam Ltd. Schedules Investor Call to Discuss Q1FY26 Results

Sheela Foam Ltd. has announced an investor and analyst conference call scheduled for August 6, 2025, where the management will discuss the financial results for the quarter ended June 30, 2025. This conference call is an opportunity for stakeholders to gain insights into the company’s financial performance and strategic direction, which could impact its market positioning and investor relations.