Sheela Foam Ltd. (IN:SFL)
:SFL
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Sheela Foam Ltd.
(SFL)
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Rating:61Neutral
Price Target:
₹639.00
▲(8.44% Upside)
Action:Reiterated
Date:05/16/26
The score is driven mainly by solid but mixed fundamentals: strong top-line growth and improving leverage are offset by 2026 margin compression and uneven cash-flow conversion. Technicals are moderately supportive with price above key short-term averages, while valuation is a headwind due to a relatively high P/E.
Positive Factors
Strong branded consumer franchise
A strong consumer brand (Sleepwell) and multi-channel distribution are durable advantages. Brand-led demand supports premium mix, repeat purchases and higher margins versus commodity foam, while a broad dealer/retail network reduces single-channel dependence and supports steady consumer sales over months.
Negative Factors
Material gross margin compression in 2026
Significant gross margin compression signals structural pressure from input costs or adverse product mix. If higher petrochemical input prices or lower-priced mix persist, margin recovery may be slow, reducing operating leverage and limiting durable profit improvement over coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong branded consumer franchise
A strong consumer brand (Sleepwell) and multi-channel distribution are durable advantages. Brand-led demand supports premium mix, repeat purchases and higher margins versus commodity foam, while a broad dealer/retail network reduces single-channel dependence and supports steady consumer sales over months.
Read all positive factors
Sheela Foam Ltd. (SFL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹64.21B
Dividend YieldN/A
Average Volume (3M)7.88K
Price to Earnings (P/E)31.8
Beta (1Y)0.89
Revenue Growth11.10%
EPS Growth66.31%
CountryIN
Employees2,221
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)5.27
Shares Outstanding109,198,920
10 Day Avg. Volume6,828
30 Day Avg. Volume7,885
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)1.56
Price to Sales (P/S)1.33
P/FCF Ratio20.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)27.4
Revenue Forecast (FY)₹42.39B
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 product...
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
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.13B | 38.21B | 34.39B | 30.05B | 28.73B | 28.64B |
| Gross Profit | 11.66B | 8.48B | 12.80B | 11.43B | 10.19B | 9.25B |
| EBITDA | 2.99B | 3.93B | 2.50B | 4.38B | 3.81B | 3.91B |
| Net Income | 573.60M | 1.60B | 960.90M | 1.82B | 1.99B | 2.17B |
Balance Sheet | ||||||
| Total Assets | 51.77B | 51.17B | 54.67B | 53.40B | 27.11B | 23.72B |
| Cash, Cash Equivalents and Short-Term Investments | 2.79B | 1.71B | 5.18B | 661.90M | 7.55B | 1.31B |
| Total Debt | 12.57B | 9.08B | 14.62B | 14.93B | 5.71B | 4.66B |
| Total Liabilities | 20.90B | 18.57B | 23.72B | 23.59B | 11.02B | 9.72B |
| Stockholders Equity | 30.80B | 32.52B | 30.35B | 29.20B | 16.00B | 13.93B |
Cash Flow | ||||||
| Free Cash Flow | 553.00M | 2.48B | 1.33B | -19.43B | 3.90M | 336.93M |
| Operating Cash Flow | 1.18B | 3.81B | 2.52B | 4.06B | 2.12B | 1.97B |
| Investing Cash Flow | 1.97B | 2.84B | -288.20M | -22.58B | -2.68B | -3.06B |
| Financing Cash Flow | -3.30B | -6.75B | -2.26B | 18.54B | 561.20M | 926.84M |
Sheela Foam Ltd. Technical Analysis
Positive
589.25
Price Trends
531.02
Positive
548.50
Positive
607.19
Negative
Market Momentum
15.55
Negative
59.56
Neutral
48.08
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 589.25 is above the 20-day moving average (MA) of 552.60, above the 50-day MA of 531.02, and below the 200-day MA of 607.19, indicating a neutral trend. The MACD of 15.55 indicates Negative momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 48.08 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹187.09B | -59.47 | ― | 1.16% | 2.95% | -143.51% | |
66 Neutral | ₹91.51B | 297.90 | ― | ― | 11.17% | -1.29% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ₹64.21B | 31.81 | ― | ― | 11.10% | 66.31% | |
61 Neutral | ₹85.10B | 47.06 | ― | 0.27% | 9.66% | -10.36% | |
61 Neutral | ₹18.53B | 20.37 | ― | 1.43% | 14.05% | 8.60% | |
45 Neutral | ₹49.39B | -33.51 | ― | 1.43% | -40.93% | -164.83% |
* Consumer Cyclical Sector Average
IN:SFL
Sheela Foam Ltd.
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-10.48%
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Sheela Foam Ltd. Corporate Events
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.