Sheela Foam Ltd. (SFL) AI Stock Analysis

• Market Cap: ₹60.20B
• Dividend Yield: N/A
• Average Volume (3M): 7.88K
• Price to Earnings (P/E): 66.6
• Beta (1Y): 0.93
• 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): 4.77
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 12.9
• Revenue Forecast (FY): ₹37.41B

• Rating: 54 Neutral
• Price Target: ₹565.00 ▼(-4.12% Downside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

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

Strong consumer brand & distribution

Sleepwell brand recognition and an established dealer network provide durable pricing power and repeat-purchase economics in the home-comfort category. Broad distribution and exclusive outlets support premium product mix, steady customer acquisition and sustained revenue growth over months.

Vertical integration & manufacturing scale

Integrated PU-foam production through conversion to finished mattresses lets SFL capture upstream and downstream margins, reduce procurement dependence, and benefit from scale. This structural setup supports margin resilience, lower unit costs at higher utilization, and faster product innovation over time.

Manageable leverage and improving cash flow

A moderate debt-to-equity ratio and strong equity base, combined with FCF recovery, provide financial flexibility to fund channel expansion and capex without heavy refinancing. Improved cash conversion reduces liquidity strain and supports steadier investment in distribution and product lines over the medium term.

Negative Factors

Thin net margins and low ROE

A low net margin and sub-4% ROE show weak bottom-line conversion despite decent gross margins, indicating operating cost pressures or limited pricing pass-through. Persistently thin profitability constrains retained earnings, lowers return on invested capital, and limits long-term shareholder value creation.

Declining EPS

A roughly 35% decline in EPS signals meaningful deterioration in net income versus prior periods. Sustained EPS contraction reduces reinvestable cash, limits strategic flexibility for expansion or product investment, and, if structural, indicates deeper margin or cost issues that may persist months ahead.

Raw material input exposure

High sensitivity to petrochemical feedstock prices creates structural margin volatility because input cost swings are frequent and can be hard to fully pass through. Over a multi-month horizon this exposure can materially compress margins and make cash flows less predictable during commodity cycles.

Sheela Foam Ltd. Business Overview & Revenue Model

Company Description

Sheela Foam Limited engages in the manufacture and sale of polyurethane foams primarily in India and internationally. The company provides various technical products, such as automotive, reticulated, ultraviolet stable, and silenctech foam products. It also offers mattresses, furniture cushioning, pillows, bolsters, sofa-cum-beds, comforters/blankets, mattress protectors, and other products. The company provides its products under the Sleepwell, Feather Foam, and Starlite brands. It distributes its products through distributors, dealers, and multi-brand outlets. The company also exports its products to approximately 25 countries worldwide. Sheela Foam Limited was incorporated in 1971 and is headquartered in Noida, India.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 589.25
• 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 589.25 is above the 20-day moving average (MA) of 577.07, above the 50-day MA of 566.68, and below the 200-day MA of 645.18, indicating a bearish trend. The MACD of -3.58 indicates Positive momentum. The RSI at 44.20 is Neutral, neither overbought nor oversold. The STOCH value of 24.67 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
KKCL	66 Neutral	₹29.96B	22.36	―	0.41%	28.67%	-20.77%
JBMA	64 Neutral	₹124.62B	61.89	―	0.15%	7.63%	11.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MAHSCOOTER	61 Neutral	₹151.16B	42.25	―	1.57%	―	―
GREENPLY	57 Neutral	₹26.21B	36.60	―	0.19%	4.40%	-20.15%
CENTURYPLY	55 Neutral	₹162.13B	68.81	―	0.12%	16.88%	6.77%
SFL	54 Neutral	₹60.20B	66.57	―	―	4.98%	-62.09%

Sheela Foam Ltd. Corporate Events

Sheela Foam Files NCLT-Approved Composite Scheme; Sets Share Swap for Kurlon Enterprise Investors

Sheela Foam Limited has announced that the National Company Law Tribunal, Mumbai Bench, has approved its Composite Scheme of Arrangement involving multiple group and related entities, including Belvedore International, Kanvas Concepts, Kurlon Retail, Komfort Universe Products and Services, Starship Value Chain and Manufacturing, and Kurlon Enterprise, which are being consolidated into Kurlon Enterprise and subsequently amalgamated into Sheela Foam. The company has filed the certified NCLT order with the Registrar of Companies, and as part of the scheme, shareholders of Kurlon Enterprise as of 30 January 2026 will receive 52 equity shares of Sheela Foam for every 100 shares held, marking a key step in restructuring the group’s corporate structure and potentially streamlining operations and enhancing shareholder alignment.

Sheela Foam Schedules Online One-on-One Meeting With Investors and Analysts on December 24

Sheela Foam Limited has notified the stock exchanges that its management will hold an online one-on-one investor and analyst meeting on December 24, 2025, at 12:00 PM. The company emphasized that the schedule is subject to change due to unforeseen circumstances and clarified that no unpublished price-sensitive information is intended to be shared during these interactions, underscoring its compliance with SEBI’s disclosure regulations and its ongoing engagement with the investor community.