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Sheela Foam Ltd Stock Analysis

Mid Cap
Evaluated by 752 users | BSE: 540203 | NSE: SFL |
Household & Personal Products

Sheela Foam is a leading player in India’s mattress and foam products industry. Founded in 1971, the Company enjoys strong brand awareness and a nationwide presence in manufacturing of mattresses, home comfort products and technical grades of PU foam....

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%26.39%20.84%21.96%
Value Creation Index 0.02-0.41-0.090.240.171.231.241.030.600.69
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.) 3.72.054.67.547.418.322.2325.4824.9532.58
Y-o-Y Gr. Rt.--44.6%124.4%63.9%-1.9%147.3%21.5%14.6%-2.1%30.6%
Book Value per Share (Rs.) 24.3527.1732.9838.145.1663.6686.36111.99137.15170.17
Adjusted Net Profit 26.710.222.536.836.189.3108124122159
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 27.3%34.5%13.6%30.6%
Book Value per Share 24.130.425.424.1
Share Price - - 12.9% 45.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 16.436.5615.1921.2117.7733.6329.6425.720.0321.2
Operating Profit Margin (%) 6.875.336.527.25.7111.1411.3511.5310.1212.79
Net Profit Margin (%) 3.591.382.543.673.187.067.597.56.719.06
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 24.92%
Non-Institutions 2.13%
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 is a leading player in India’s mattress and foam products industry. Founded in 1971, the Company enjoys strong brand awareness and a nationwide presence in manufacturing of mattresses, home comfort products and technical grades of PU foam. The Company also enjoys a significant presence overseas, with its products being exported to over 20 countries worldwide.

The products of the Company and its

Sheela Foam is a leading player in India’s mattress and foam products industry. Founded in 1971, the Company enjoys strong brand awareness and a nationwide presence in manufacturing of mattresses, home comfort products and technical grades of PU foam. The Company also enjoys a significant presence overseas, with its products being exported to over 20 countries worldwide.

The products of the Company and its various brands earn the credit of being highly durable and of unmatched quality. These products are the outcome of the ingenious R&D efforts of the Company. A highly skilled team of engineers and scientists constantly strive to create pioneering products by leveraging best-in-class technologies, while ensuring supreme quality.

Sleepwell, the flagship brand of the Company, delivers on its brand promise of producing premium and customized products. Over the years, the brand has earned a formidable reputation of developing delightful products in line with growing consumer aspirations. Other brands of the Company include Feather Foam and Starlite, which are low-priced mattresses for consumers. These brands have enabled the Company to augment its share in the organised mattress market.

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.

Products

Mattresses: My Mattress, Spring range, Technology range, Comfort Cell range, Back support range, Flexi PUF range, Economy range Technical Products

Home Comfort Products: Furniture Cushions, Pillows, Comforters/Duvets, Sofa-cum-Beds

Technical Foam Products: Automotive foams, Reticulated foams, Ultra-Violet Stable foams, Sound Absorption foams

Awards

  • 2007: Won CIO100 award
  • 2008: Won CNBC Nasscom IT user award
  • 2009: Won Information Week Silver Edge Award
  • 2009: Won Dataquest Gold CIO award
  • 2010: Won Information Week Silver Edge Award
  • 2010: Won CIO100 award
  • 2010: CIO Green Edge – Special Award
  • 2010: Won CIO Asia Award
  • 2011: Won Red Hat Asia Pacific Award
  • 2011: Won MIS Asia IT Excellence Award- one of the Asia's most prestigious awards
  • 2011: Won Indian Express Intelligent Enterprise Award
  • 2012: Won CIO100 award
  • 2012: Won Information Week Silver Edge Award
  • 2012: Won CIO Innovative Award
  • 2012: Won CIO Innovative Award – Special Award
  • 2012: Won Dataquest Innovator Award
  • 2012: Won SKOCH Digital Inclusion Award
  • 2014: Won CIO100 award
  • 2014: Won Information Week Silver Edge Award
  • 2014: Won CIO 100 - Hall of Fame
  • 2015: Won Dataquest Business Technology Award
  • 2015: Won BSE-CIOKLUB ‘CIO of the Year’
  • 2016: Received the Computer World Premier Award
  • 2017: Awarded by PU Tech for Innovative Technology for Vertical Variable Pressure Foaming.
  • 2018: Most Trusted Mattress Brand Award In India - Reader's Digest most trusted brand award 2018 trophy
  • 2018: Economic Times Best Brand 2019 - In the Sleep & Comfort Brand Category.
  • 2018: Business Standard Star SME of the Year 2017-18.
  • 2018: Computer Society of India ‘Best CIO of the Year - 2018’ for IT Innovation & Excellence
  • 2018: Data Quest ‘Digital Leader 2018’. This award is based on the ability to transform enterprise computing to the next orbit
  • 2018: IDC Insights Award 2018 has been awarded in the category of Excellence in Revenue Generation.
  • 2019-20: IOT Innovation Award
  • 2019-20: Great Place to Work
  • 2019-20: National Awards for Manufacturing Competitiveness
  • 2019-20: RK Bajaj Performance Excellence Trophy
  • 2019-20: India’s Best Mattress Brand of the Year 2020

Milestones

  • 1971: Sheela Foam Pvt Ltd. Founded by Mrs. Sheela Gautam, Chairperson.
  • 1985:  Extended operations to NOIDA, a Satellite town of Delhi.
  • 1993: Process of liberalization started in the country and Sheela Group began rapid expansion
  • 1993: ‘Sleepwell’ brand launched.
  • 1994: Acquisition of a full fledged plant near Delhi.
  • 1996: Two more units added at Silvassa, near Mumbai and at Hyderabad in Andhra Pradesh
  • 1998: Introduced Rubberized Coir products under ‘Starlite’ Brand.
  • 1999: Tie - ups with Serta, US and Dunlopillo, UK for manufacturing mattresses
  • 2001: Set - up India's largest P.U. Foam producing plant at Greater Noida.
  • 2002: Expanded operations in North from plant at Rajpura, Punjab
  • 2003:  Set - up a manufacturing unit at Sikkim.
  • 2005: Acquired Polyurethane & Polystyrene business of Joyce, Australia
  • 2006: Joint Venture with Woodbridge Group, Canada for manufacturing moulded P.U. Foam - Auto components.
  • 2008: Joint Venture with AH Beards Australia for manufacturing Spring Mattresses
  • 2008: Revolutionised Mattress Retail with the launch of Sleepwell Worlds & Galleries
  • 2010: Launch of revolutionary technologies with Impressions, Latex Plus, Resitec Air, Duet Luxury, Durafirm, Serenity, Amity and many more.
  • 2012: A new State of the Art Unit in Erode starts operations to cater to the Southern markets
  • 2013: Expanded Production capacities at Kala Amb in HP for Northern Markets
  • 2015: Launch of Sleepedia, an initiative by Sleepwell to raise public awareness on importance of quality sleep as a means of good health and wellbeing
  • 2015: Launch of ‘Perfect Match’ a revolutionatry concept that uses world class Sensobed to recommend the perfect sleeping surface for every individual body type.
  • 2015: Introduced My Mattress Concept that enables a customer to choose the right mattress for themselves
  • 2015: A new State of the Art Unit in Siliguri starts operations to cater to the eastern markets
  • 2016: Company got listed on NSE and BSE.
  • 2018: Launch of Economy Product Range & E-commerce
  • 2019: Footprint in Europe, the Company acquired Interplasp S.L. in Spain
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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