Why is Sheela Foam Ltd. ?
1
Weak Long Term Fundamental Strength with a -16.57% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 9.36% signifying low profitability per unit of shareholders funds
2
The company has declared Negative results for the last 9 consecutive quarters
- PAT(9M) At Rs 42.60 cr has Grown at -43.93%
- ROCE(HY) Lowest at 1.63%
- INVENTORY TURNOVER RATIO(HY) Lowest at 0.93 times
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -29.87% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Sheela Foam for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sheela Foam
-29.87%
-1.03
29.04%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
11.50%
EBIT Growth (5y)
-16.57%
EBIT to Interest (avg)
7.67
Debt to EBITDA (avg)
2.89
Net Debt to Equity (avg)
0.32
Sales to Capital Employed (avg)
1.17
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
25.17%
ROCE (avg)
10.56%
ROE (avg)
9.36%
Valuation Key Factors 
Factor
Value
P/E Ratio
106
Industry P/E
63
Price to Book Value
2.11
EV to EBIT
81.00
EV to EBITDA
26.40
EV to Capital Employed
1.84
EV to Sales
2.13
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
2.27%
ROE (Latest)
1.99%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
6What is working for the Company
PBT LESS OI(Q)
At Rs 9.54 cr has Grown at 263.92%
OPERATING PROFIT TO INTEREST(Q)
Highest at 3.10 times
OPERATING PROFIT TO NET SALES(Q)
Highest at 9.96%
-16What is not working for the Company
PAT(9M)
At Rs 42.60 cr has Grown at -43.93%
ROCE(HY)
Lowest at 1.63%
INVENTORY TURNOVER RATIO(HY)
Lowest at 0.93 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.94 times
NON-OPERATING INCOME(Q)
is 52.47 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Sheela Foam
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 9.54 cr has Grown at 263.92%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 3.10 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit Margin - Quarterly
Highest at 9.96%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Here's what is not working for Sheela Foam
Profit After Tax (PAT) - Quarterly
At Rs 14.54 cr has Fallen at -27.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Inventory Turnover Ratio- Half Yearly
Lowest at 0.93 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Non Operating Income - Quarterly
is 52.47 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Debtors Turnover Ratio- Half Yearly
Lowest at 0.94 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






