Sheela Foam Ltd - Fundamentals - Stock Insights

 Sheela Foam Ltd - Fundamentals - Stock Insights

 

Sheela Foam Limited is a leading company and Market Leader in the Mattress Segment in India, which was founded in the year 1971. The company holds more than 30 Percent Market Share in the Mattress Segment in India, focused on PU(Polyurethane) Foam and Rubberized Coir Mattresses.

The company manufactures and sells like Furniture Cushions, Pillows, Mattresses, Bedspreads, Blankets, Mattress Protectors, Sofa sets and other bedding and comforter related Products. It is also exporting it's products to more than 25 Nations and the company has a strong base in India in it's business with more than 100+ Exclusive Dealers, 5,000+ Exclusive Brand outlets and 13,000+ Retail Dealers.


 

 

Sheela Foam Ltd's products are mostly used in the Automotive, Audio Industry, Hotels, Wedding Houses, Guest Houses, Resorts and Well decorated Apartments. The Company's Popular brands are Sleepwell, Kurl-on, Feather Foam, Joyce, Interplasp, SleepX, Lamiflex and Starlite which is well known globally. The company have a separate / Subsidiary division in Australia, which branded as, 'Joyce Foam' which is having 40 Percent Market Share in the Mattress Segment in Australia. 

The major and popular clients of Sheela Foam are Reliance Industries, Mahindra, Cummins, Eicher Motors, Koel, Adidas, Studds, Urban Ladder, Relaxwell, Feelex, Coco Foam, Essentials, Maruti Suzuki and more on with Familiar companies. 

 


 

Sheela Foam Ltd is having 17 Manufacturing plants globally, 5 of these plants are in Australia, One in Spain and rest are domestic. In India, there is an integrated manufacturing facility with capacity of 1.29 Lakh MTPA, 11,000 MTPA in Australia and 17,000 MTPA in Spain.

The company has been active over the past few years in making necessary investments in it's business to increase the Production and also acquiring other companies in this segment. It is also spending a reasonable amount of 2.5 Percent on it's Revenue for Advertising and utilizing the E-commerce Platforms to increase it's Revenue Growth.

Particularly, the company acquired India's Popular Mattress Brand Kurl-on (Kurlon Enterprises) for Rs.2,035 Crore and a leading Online Furniture Rental Platform - Furnlenco for Rs.300 Crore in the year 2023. Previously, it was acquired the Spain-based InterPlasp company for 42 Million Euros in the year 2019.

At the time of acquisition, Furlenco was said to valued around Rs.857 Crore, while Kurl-on was said to be valued Rs.3,000-3,500 Crore. However, today the Market cap of Kurl-on is about Rs.4,560 Crore and Furlenco is around Rs.1,920 Crore (October 2024). It is noteworthy that Sheela Foam Ltd had increased it's Market Share, post acquisition of Kurl-on Enterprises.

Here are few and important Fundamental Parameters of this company (FY24),

  • Market Capitalization:Rs. 9,178 Crore
  • Stock Price: Rs. 844 per Share 
  • Face value: Rs.5 per share
  • Book value: Rs.276 per share
  • Recent P/E: 94.3 Times (Industry PE: 62.1 Times)
  • Recent PEG: 90.7 Times
  • Interest Coverage Ratio(ICR): 2.37 Times
  • Debt to Equity: 0.48 Times
  • Promoter Holding: 65.5% (FII: 6.60% and DII: 22.30%)
  • 5 Yrs ROE(Return on Equity): 13.7%
  • 5 Yrs ROCE(Return on Capital Employed): 17.8%
  • Price to Sales: 2.74 Times
  • 5 Yrs Compounded Sales Growth: 8% (10 Yrs: 9%)
  • 5 Yrs Compounded Profit Growth: 1% (10 Yrs: 17%)
  • Bonus issue, if any: Yes (Bonus issue 1:1 in the year 2022)

 


 

 

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