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Sheela Foam Ltd. Stock Analysis

Mid Cap
Evaluated by 662 users | BSE: 540203 | NSE: SFL |
Household & Personal Products
Sheela Foam was incorporated in 1971, and over the last two decades, has developed Sleepwell as an overarching brand associated with comprehensive and quality home-comfort solutions. The recall of the company’s brand has been established by an extensive suite of products that range from...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Sheela Foam Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 13.32%7.73%11.79%16.06%15.25%28.97%29.06%26.28%20.11%21.35%
Value Creation Index 0.02-0.41-0.090.240.171.231.241.020.550.64
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7447408851,0031,1361,2651,4291,6571,8141,755
Y-o-Y Gr. Rt.--0.6%19.7%13.2%13.3%11.4%12.9%16%9.5%-3.3%
Adjusted EPS (Rs.) 3.72.054.67.547.418.322.2325.3724.0331.64
Y-o-Y Gr. Rt.--44.6%124.4%63.9%-1.9%147.3%21.5%14.1%-5.3%31.7%
Book Value per Share (Rs.) 24.3527.1732.9838.145.1663.6686.36111.99137.15170.17
Adjusted Net Profit 26.710.222.536.836.189.3108124117154
Net Op. Cash Flow (Rs. Cr.) 033.576.4121110171102114120130
Debt to Cash Flow from Ops 04.211.610.760.650.270.040.0100
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Sheela Foam Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10%9.1%7.1%-3.3%
Adjusted EPS 26.9%33.7%12.5%31.7%
Book Value per Share 24.130.425.424.1
Share Price - - -7.8% 3.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 16.436.5615.1921.2117.7733.6329.6425.5819.2920.59
Operating Profit Margin (%) 6.875.336.527.25.7111.1411.3511.5310.1212.79
Net Profit Margin (%) 3.591.382.543.673.187.067.597.476.468.8
Debt to Equity 0.61.050.760.490.330.150.01000
Working Capital Days 77746863575052616275
Cash Conversion Cycle -7,20430302820119162329
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 72.95%
Institutions 24.99%
Non-Institutions 2.06%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Sheela Foam Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Sheela Foam Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

Data is not available for this company.

Data is not available for this company

Sheela Foam was incorporated in 1971, and over the last two decades, has developed Sleepwell as an overarching brand associated with comprehensive and quality home-comfort solutions. The recall of the company’s brand has been established by an extensive suite of products that range from baseline bedding and furniture cushioning material to ergonomically tailored offerings, an emphasis on quality control and focused brand building. In respect of its technical foam manufacture

Sheela Foam was incorporated in 1971, and over the last two decades, has developed Sleepwell as an overarching brand associated with comprehensive and quality home-comfort solutions. The recall of the company’s brand has been established by an extensive suite of products that range from baseline bedding and furniture cushioning material to ergonomically tailored offerings, an emphasis on quality control and focused brand building. In respect of its technical foam manufacture business, “Sheela Foam” is a recognised name associated with diverse and sophisticated grades of technical foam.

As part of its home comfort range, the company offers a product portfolio that appeal to consumers of widely differing attributes and preferences. Its home comfort line comprises of products such as mattresses, furniture-cushioning, pillows, cushions, sofa-cum-beds as well as PU foam cores utilised for manufacturing finished home comfort products. Its mattress line, offered under its Sleepwell range, encompasses pure foam mattresses as well as hybrids of spring and coir with foam that are capable of bespoke customisation as per the requirements of consumers. Its furniture-cushioning line, offered under Sleepwell and Feather Foam brands, comprises PU Foam that constitutes upholstery material of varying densities to ensure greater comfort and durability. Its home comfort portfolio also includes pillows, bolsters and cushions that are intended to provide varying physiological and comfort solutions, sofa-cum-beds and comfort accessories like bed sheets, baby care sheets and mattress protectors.

Business area of the company

The company is a leading manufacturer of mattresses in India marketed under its flagship brand “Sleepwell”. In addition, it manufactures other foam-based home comfort products targeted primarily at Indian retail consumers, as well as technical grades of polyurethane foam (PU Foam) for end use in a wide range of industries. As part of its international footprint, the company manufactures PU Foam in Australia through its wholly owned subsidiary, Joyce Foam Pty Ltd.

Major events and milestones

  • 1971: Incorporation of the company.
  • 1972: Commencement of manufacturing at the manufacturing facility in Sahibabad.
  • 1972: Launch of “Feather Foam” brand.
  • 1994: Launch of “Sleepwell” brand.
  • 1996 - 1997: Set up of its manufacturing facilities at Silvassa and Hyderabad.
  • 1997 - 1998: Commencement of rubberised coir production in Pondicherry and Sahibabad.
  • 2001: Set up of its manufacturing facility in Greater Noida.
  • 2003: Acquisition of Auora Foams Private Limited.
  • 2003: Merger of Feather Foam Enterprises Private Limited, Soft Foam Industries Private Limited and Pallavi Foam Industries Private Limited with the company.
  • 2003: Set up of its manufacturing facility in Sikkim.
  • 2005: Incorporation of Joyce, its wholly owned subsidiary in Australia.
  • 2005: Acquisition of the business of Joyce Corporation Limited, Joyce Indpac Limited and Marfoam Pty Ltd by Joyce.
  • 2010: Introduction of variable pressure foaming technology in Joyce.
  • 2011: Set up of its manufacturing facility in Erode.
  • 2011: Merger of Serta India Private Limited with the company.
  • 2012: Obtainment of ISO certifications for three of its manufacturing facilities (namely, the facilities located in Greater Noida, Talwada and Hyderabad).
  • 2013: Merger of SNB Bedding International Private Limited, Starlite India Private Limited, RG Pillow (India) Private Limited and Auora Foams Private Limited with the company.
  • 2015: Launch of My Mattress line.

Awards and accreditations

  • 2008: CNBC-NASSCOM IT User Award 2008 for ‘Best IT adoption in manufacturing - SME Sector’.
  • 2009: EDGE award for usage of IT for maximising business impact.
  • 2010: CIO Green Edge Award 2010.
  • 2010: CIO 100 Honouree 2010 award for excellence in strategic enterprise IT deployment.
  • 2010: EDGE award for usage of IT for maximising business impact.
  • 2011: CIO 100 Honouree 2011 award for excellence in strategic enterprise IT deployment.
  • 2011: Indian Express Intelligent Enterprise award for manufacturing.
  • 2012: EDGE award usage of IT for maximising business impact.
  • 2012: Skoch Digital Inclusion Award 2012 for controlling unauthorised dealer selling using RFID.
  • 2014: EDGE award for usage of IT.
  • 2015: Dataquest Business Technology Award 2015 for excellence in implementation and use of technology for business benefits in the category of ‘mobility’.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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