Sheela Foam Ltd. (SFL) AI Stock Analysis

• Market Cap: ₹72.52B
• Dividend Yield: N/A
• Average Volume (3M): 8.93K
• Price to Earnings (P/E): 126.1
• Beta (1Y): 0.89
• Revenue Growth: 9.66%
• EPS Growth: -69.75%
• Country: IN
• Employees: 2,221
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.68
• Shares Outstanding: 108,710,780
• 10 Day Avg. Volume: 8,917
• 30 Day Avg. Volume: 8,929
• 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: ₹751.00
• Price Target Upside: 12.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ₹751.00 ▲(12.58% Upside)

Sheela Foam Ltd. has a strong financial performance with robust revenue growth and operational efficiency, which is the most significant factor in its score. However, the high P/E ratio suggests overvaluation, and the technical indicators show mixed momentum, which tempers the overall score.

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

Sheela Foam Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 667.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 667.1 is below the 20-day moving average (MA) of 709.62, below the 50-day MA of 692.74, and below the 200-day MA of 750.34, indicating a bearish trend. The MACD of -6.79 indicates Positive momentum. The RSI at 36.21 is Neutral, neither overbought nor oversold. The STOCH value of 11.17 is Positive, 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	67 Neutral	₹33.81B	22.15	18.20%	0.37%	30.23%	4.59%
GREENPLY	66 Neutral	₹38.14B	43.75	11.33%	0.16%	3.83%	-15.55%
SFL	65 Neutral	₹72.52B	126.09	―	―	9.66%	-69.75%
JBMA	64 Neutral	₹162.19B	79.00	14.95%	0.12%	7.18%	12.78%
CENTURYPLY	62 Neutral	₹177.73B	87.66	7.84%	0.13%	17.28%	-25.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Sheela Foam Ltd. Corporate Events

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.

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.