Recent Price Movement and Market Context
On 21 Nov 2025, Sheela Foam . recorded its lowest price in the past year at Rs.610, a level not seen before in its trading history. The stock has been on a losing streak for six consecutive trading sessions, resulting in a cumulative return of -8.15% during this period. Despite this, it marginally outperformed its sector by 0.27% on the day of the new low.
In contrast, the broader market index, Sensex, opened lower by 285.28 points and was trading at 85,316.06, down 0.37%. The Sensex remains close to its 52-week high of 85,801.70, just 0.57% away, and is positioned above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish trend for the benchmark index.
Sheela Foam . however, is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a sustained weakness in its price momentum relative to the broader market and its sector peers.
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Performance Comparison and Historical Returns
Over the last twelve months, Sheela Foam . has generated a return of -21.50%, contrasting sharply with the Sensex’s positive return of 10.62% over the same period. The stock’s 52-week high was Rs.1,058.85, highlighting the extent of the decline from its peak to the current low.
This underperformance extends beyond the past year, with the stock lagging behind the BSE500 index in each of the last three annual periods. Such consistent relative weakness points to challenges in maintaining competitive positioning within the Furniture and Home Furnishing sector.
Financial Metrics and Profitability Indicators
Sheela Foam .’s long-term financial metrics reveal subdued growth and profitability. The company’s operating profits have shown a compound annual growth rate (CAGR) of -16.57% over the last five years, indicating contraction in core earnings. Return on Equity (ROE), averaged at 9.36%, suggests modest profitability relative to shareholders’ funds.
Recent quarterly results have been negative for nine consecutive quarters, with the latest quarterly profit after tax (PAT) reported at Rs.14.54 crore, reflecting a decline of 27.1%. The half-yearly return on capital employed (ROCE) stands at a low 1.63%, while the inventory turnover ratio for the half-year is 0.93 times, signalling slower inventory movement compared to industry norms.
Valuation and Institutional Holdings
Despite the subdued financial performance, Sheela Foam . exhibits an enterprise value to capital employed ratio of 1.9, which is comparatively attractive within its sector. The company’s ROCE of 2.3 further supports this valuation perspective, indicating that the stock is trading at a discount relative to its peers’ historical averages.
Institutional investors hold a significant stake in the company, accounting for 25.17% of shareholdings. These investors typically possess greater resources and analytical capabilities to assess company fundamentals, which may influence trading dynamics.
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Sector and Market Positioning
Operating within the Furniture and Home Furnishing sector, Sheela Foam . faces competitive pressures that have been reflected in its financial and stock performance. The company’s recent results and valuation metrics suggest challenges in generating consistent profitability and growth compared to sector peers.
The stock’s current trading below all major moving averages underscores the prevailing cautious market sentiment. While the broader market indices maintain a bullish stance, Sheela Foam .’s price action indicates a divergence from this trend.
Summary of Key Data Points
To summarise, Sheela Foam .’s stock price has declined to Rs.610, its lowest level in 52 weeks, following a six-day losing streak. The stock’s one-year return of -21.50% contrasts with the Sensex’s positive 10.62% return. Financial indicators reveal a contraction in operating profits over five years, low ROE and ROCE, and a series of negative quarterly results. Valuation metrics suggest the stock trades at a discount relative to peers, with institutional investors holding a notable stake.
These factors collectively illustrate the current challenges faced by Sheela Foam . in the market and its financial performance.
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