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Sheela Foam Ltd. (IN:SFL)
:SFL
India Market
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Sheela Foam Ltd. (SFL) AI Stock Analysis

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IN:SFL

Sheela Foam Ltd.

(SFL)

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Neutral 67 (OpenAI - 5.2)
Rating:67Neutral
Price Target:
₹771.00
▲(30.84% 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
Strong consumer brand
Sheela Foam's Sleepwell brand and multi-channel distribution (distributors, exclusive outlets, retail partners) create durable consumer demand and pricing leverage. Brand equity supports a premium product mix, repeat purchases and efficient go-to-market, insulating revenues versus cyclical B2B volumes.
Negative Factors
Margin compression in 2026
Material gross margin compression in 2026 erodes core profitability and suggests input-cost pressure or weakening pricing power in key channels. If persistent, lower gross margins will constrain operating leverage, reduce free cash flow potential and weaken the firm's ability to fund growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong consumer brand
Sheela Foam's Sleepwell brand and multi-channel distribution (distributors, exclusive outlets, retail partners) create durable consumer demand and pricing leverage. Brand equity supports a premium product mix, repeat purchases and efficient go-to-market, insulating revenues versus cyclical B2B volumes.
Read all positive factors

Sheela Foam Ltd. (SFL) vs. iShares MSCI India ETF (INDA)

Sheela Foam Ltd. Business Overview & Revenue Model

Company Description
Sheela Foam Limited operates as a manufacturer and seller of polyurethane (PU) foams, with a significant presence in India and a global reach. The company's diverse product portfolio includes specialized technical foams for various applications, s...
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
Revenue growth is steady (accelerating in 2026) and leverage has improved with debt-to-equity trending down, but profitability has weakened with material gross margin compression in 2026 and net/operating margins remaining modest and inconsistent. Free cash flow improved in 2025–2026, yet cash conversion has been volatile (notably weak in 2024), limiting confidence in earnings quality.
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue35.13B38.21B34.39B30.05B28.73B28.64B
Gross Profit11.66B8.48B12.80B11.43B10.19B9.25B
EBITDA2.99B3.93B2.50B4.38B3.81B3.91B
Net Income573.60M1.60B960.90M1.82B1.99B2.17B
Balance Sheet
Total Assets51.77B51.17B54.67B53.40B27.11B23.72B
Cash, Cash Equivalents and Short-Term Investments2.79B1.71B5.18B661.90M7.55B1.31B
Total Debt12.57B9.08B14.62B14.93B5.71B4.66B
Total Liabilities20.90B18.57B23.72B23.59B11.02B9.72B
Stockholders Equity30.80B32.52B30.35B29.20B16.00B13.93B
Cash Flow
Free Cash Flow553.00M2.48B1.33B-19.43B3.90M336.93M
Operating Cash Flow1.18B3.81B2.52B4.06B2.12B1.97B
Investing Cash Flow1.97B2.84B-288.20M-22.58B-2.68B-3.06B
Financing Cash Flow-3.30B-6.75B-2.26B18.54B561.20M926.84M

Sheela Foam Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price589.25
Price Trends
50DMA
575.90
Positive
100DMA
559.25
Positive
200DMA
604.46
Positive
Market Momentum
MACD
35.19
Negative
RSI
72.34
Negative
STOCH
82.96
Negative
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 589.25 is below the 20-day moving average (MA) of 635.67, above the 50-day MA of 575.90, and below the 200-day MA of 604.46, indicating a bullish trend. The MACD of 35.19 indicates Negative momentum. The RSI at 72.34 is Negative, neither overbought nor oversold. The STOCH value of 82.96 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
₹164.87B-70.761.16%2.95%-143.51%
67
Neutral
₹76.79B48.2711.10%66.31%
66
Neutral
₹84.89B54.7711.17%-1.29%
64
Neutral
₹83.31B27.460.27%8.77%-9.21%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
₹18.95B16.541.43%14.05%8.60%
45
Neutral
₹46.02B-33.561.43%-40.93%-164.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SFL
Sheela Foam Ltd.
710.60
-9.70
-1.35%
IN:CELLO
Cello World Limited
380.75
-216.29
-36.23%
IN:CROMPTON
Crompton Greaves Consumer Electricals Ltd.
266.35
-79.87
-23.07%
IN:EUREKAFORB
Eureka Forbes Limited
457.75
-133.45
-22.57%
IN:NILKAMAL
Nilkamal Limited
1,283.50
-443.86
-25.70%
IN:SYMPHONY
Symphony Limited
673.80
-445.73
-39.81%

Sheela Foam Ltd. Corporate Events

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...
Sheela Foam Sells Fractional Shares From Kurlon Merger to Compensate Investors
Apr 23, 2026
Sheela Foam Ltd. has announced that, following the National Company Law Tribunal-approved amalgamation of Kurlon Enterprise Ltd. with Sheela Foam under a composite scheme of arrangement, fractional share entitlements arising from the share exchang...
Sheela Foam Gets BSE, NSE Nod to List Shares Issued in Kurlon Amalgamation
Apr 22, 2026
Sheela Foam Ltd. has received listing and trading approval from BSE and NSE for 488,146 equity shares allotted under a composite scheme of arrangement involving the amalgamation of Kurlon Enterprise Limited into Sheela Foam. The newly allotted sha...
Sheela Foam to Join Valorem Investor Conference in Mumbai
Mar 18, 2026
Sheela Foam Ltd. has announced that its management will participate in the 11th Annual Valorem Conference – Resilient Corporates, Relentless India, to be held on March 23, 2026, at the Grand Hyatt in Mumbai. The company emphasized that no un...
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.Date of analysis: May 23, 2026