On 19 Nov 2025, Sheela Foam . traded below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent weakness in its price momentum. This performance contrasts with the broader market, where the Sensex advanced by 0.61% to close at 85,186.93, edging closer to its 52-week high of 85,290.06. The Sensex's positive trajectory was supported by mega-cap stocks and bullish moving averages, with the 50-day moving average positioned above the 200-day moving average.
Over the past year, Sheela Foam . has underperformed significantly, delivering a return of -22.26% compared to the Sensex's 9.81% gain. The stock's 52-week high was recorded at Rs.1,058.85, highlighting the extent of the recent decline. This underperformance extends over a three-year horizon, with the company lagging behind the BSE500 index in each annual period.
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Financial metrics for Sheela Foam . reveal challenges in profitability and growth. The company has reported negative results for nine consecutive quarters, with the latest quarterly profit after tax (PAT) at Rs.14.54 crores, reflecting a decline of 27.1%. 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 9.36%, suggesting modest profitability relative to shareholders' funds. Return on capital employed (ROCE) for the half-year stood at 1.63%, one of the lowest levels recorded, while inventory turnover ratio was 0.93 times, signalling slower movement of stock compared to industry norms.
Despite these figures, the stock is trading at a valuation that appears attractive relative to its peers. The ROCE of 2.3 and an enterprise value to capital employed ratio of 1.9 indicate a discount compared to average historical valuations within the Furniture and Home Furnishing sector. However, this valuation reflects the market's assessment of the company's current financial position and performance trends.
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Institutional investors hold a significant stake in Sheela Foam ., accounting for 25.17% of the shareholding. These investors typically possess extensive resources and analytical capabilities to assess company fundamentals, which may influence trading patterns and valuation assessments.
In the context of the broader market, Sheela Foam .'s performance diverges from the upward momentum seen in the Sensex and mega-cap stocks. While the Sensex trades above its 50-day moving average and maintains a bullish posture, Sheela Foam . remains below all major moving averages, underscoring the stock's relative weakness.
Overall, Sheela Foam .'s decline to Rs.611 marks a notable milestone in its recent price trajectory, reflecting a combination of subdued financial results, valuation adjustments, and sector-specific dynamics. The stock's performance over the past year and longer-term trends highlight ongoing challenges in generating consistent profitability and growth within the Furniture and Home Furnishing industry.
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