Sheela Foam Ltd. (SFL) AI Stock Analysis

• Market Cap: ₹77.82B
• Dividend Yield: N/A
• Average Volume (3M): 7.88K
• Price to Earnings (P/E): 127.3
• Beta (1Y): 0.90
• Revenue Growth: 4.98%
• EPS Growth: -62.09%
• Country: IN
• Employees: 2,221
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.88
• Shares Outstanding: 108,710,780
• 10 Day Avg. Volume: 6,828
• 30 Day Avg. Volume: 7,885
• PEG Ratio: -1.59
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 2.22
• P/FCF Ratio: 57.19
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹635.00 ▲(5.84% Upside)

Sheela Foam Ltd. shows strong financial performance with robust revenue growth and operational efficiency. However, the technical indicators suggest bearish momentum, and the high P/E ratio indicates overvaluation. The lack of dividend yield further impacts the valuation negatively.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term expansion and competitiveness.

Operational Efficiency

Healthy EBIT and EBITDA margins reflect effective cost management and operational efficiency, enhancing profitability and competitive advantage.

Cash Flow Conversion

Effective cash conversion supports financial stability and flexibility, enabling reinvestment in growth opportunities and debt management.

Negative Factors

Net Profit Margin Pressure

Pressure on net profit margins can limit profitability, affecting the company's ability to reinvest in growth and maintain competitive pricing.

High P/E Ratio

A high P/E ratio suggests market expectations may not align with fundamentals, potentially leading to volatility and investor skepticism.

Return on Equity

Low return on equity indicates underutilization of shareholder funds, potentially impacting investor confidence and long-term growth prospects.

Sheela Foam Ltd. Business Overview & Revenue Model

Company Description

Sheela Foam Ltd. (SFL) is a leading manufacturer of foam and mattress products in India, specializing in the production of various types of polyurethane and polyether foams. The company operates primarily in the bedding, furniture, and automotive sectors, offering a wide range of products that include mattresses, cushions, pillows, and specialized foams for diverse applications. With a strong brand presence through its flagship brand, 'Sleepwell,' SFL caters to both retail consumers and institutional clients, positioning itself as a key player in the foam manufacturing industry.

How the Company Makes Money

Sheela Foam Ltd. generates revenue primarily through the sale of its foam products, including mattresses and furniture-grade foam, to both individual consumers and businesses. The company operates through a multi-channel distribution strategy that includes direct sales to retailers, online sales, and partnerships with various commercial entities. Key revenue streams include direct sales from retail outlets and e-commerce platforms, as well as bulk sales to furniture manufacturers and other industries requiring specialized foam solutions. Additionally, the company benefits from strong brand loyalty and recognition, which enhances its market share and customer retention. Significant partnerships with distribution networks and retail chains further contribute to its earnings, allowing SFL to reach a broader audience and maintain a competitive edge in the market.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.51B	34.39B	30.05B	28.73B	28.64B	24.34B
Gross Profit	11.45B	12.80B	11.43B	10.19B	9.25B	9.95B
EBITDA	3.10B	2.50B	4.38B	3.81B	3.91B	4.04B
Net Income	575.10M	960.90M	1.82B	1.99B	2.17B	2.38B
Balance Sheet
Total Assets	0.00	54.67B	53.40B	27.11B	23.72B	20.76B
Cash, Cash Equivalents and Short-Term Investments	5.16B	5.18B	661.90M	7.55B	1.31B	1.65B
Total Debt	0.00	14.62B	14.93B	5.71B	4.66B	3.34B
Total Liabilities	-30.96B	23.72B	23.59B	11.02B	9.72B	8.83B
Stockholders Equity	30.96B	30.35B	29.20B	16.00B	13.93B	11.84B
Cash Flow
Free Cash Flow	0.00	1.33B	-19.43B	3.90M	336.93M	1.96B
Operating Cash Flow	0.00	2.52B	4.06B	2.12B	1.97B	2.60B
Investing Cash Flow	0.00	-288.20M	-22.58B	-2.68B	-3.06B	-2.15B
Financing Cash Flow	0.00	-2.26B	18.54B	561.20M	926.84M	-323.47M

Sheela Foam Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 599.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 599.95 is below the 20-day moving average (MA) of 646.62, below the 50-day MA of 664.03, and below the 200-day MA of 689.23, indicating a bearish trend. The MACD of -21.27 indicates Positive momentum. The RSI at 32.72 is Neutral, neither overbought nor oversold. The STOCH value of 29.38 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GREENPLY	67 Neutral	₹37.37B	42.87	―	0.18%	4.40%	-20.15%
KKCL	66 Neutral	₹31.90B	24.56	―	0.40%	28.67%	-20.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CENTURYPLY	55 Neutral	₹175.53B	75.76	―	0.13%	16.88%	6.77%
SFL	54 Neutral	₹77.82B	127.34	―	―	4.98%	-62.09%
JBMA	54 Neutral	₹153.65B	73.72	―	0.14%	7.63%	11.25%

Sheela Foam Ltd. Corporate Events

Sheela Foam Releases Q2 & H1 FY26 Financial Results

Sheela Foam Limited has released an investor presentation detailing its unaudited financial results for the quarter and half-year ending September 30, 2025. This announcement is part of the company’s ongoing commitment to transparency and regulatory compliance, potentially impacting investor confidence and market positioning.

Sheela Foam Ltd. Announces Investor Roadshow in Mumbai

Sheela Foam Ltd. has announced a non-deal roadshow scheduled for October 7th and 8th, 2025, in Mumbai, where the company’s management will engage with multiple investors. This event is part of their investor relations strategy, aiming to strengthen relationships with stakeholders and provide insights into the company’s operations without discussing any unpublished price-sensitive information.

Sheela Foam Ltd. Schedules Investor and Analyst Meeting

Sheela Foam Ltd. has announced a scheduled meeting with investors and analysts on August 28, 2025. This meeting will be conducted online and will involve one-to-one interactions. The company has clarified that no unpublished price-sensitive information will be discussed during these interactions, indicating a focus on maintaining transparency and compliance with regulatory requirements.