ScoreWhy is Sheela Foam Ltd. ?
1
Company has a Debt to Equity ratio (avg) of 0.25 times
2
Poor long term growth as Operating profit has grown by an annual rate -5.79% of over the last 5 years
3
With a growth in Net Profit of 519.1%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 2 consecutive quarters
- PBDIT(Q) Highest at Rs 116.62 cr.
- OPERATING PROFIT TO NET SALES(Q) Highest at 11.11%
- PBT LESS OI(Q) Highest at Rs 60.14 cr.
4
With ROCE of 5.4, it has a Very Attractive valuation with a 1.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -9.17%, its profits have risen by 119.7% ; the PEG ratio of the company is 0.4
5
High Institutional Holdings at 24.71%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -9.17% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sheela Foam should be less than 10%
- Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sheela Foam for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Sheela Foam
-9.26%
-0.26
36.19%
Sensex
-7.86%
-0.61
12.97%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.43%
EBIT Growth (5y)
-5.79%
EBIT to Interest (avg)
5.79
Debt to EBITDA (avg)
3.06
Net Debt to Equity (avg)
0.23
Sales to Capital Employed (avg)
1.10
Tax Ratio
23.31%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
24.71%
ROCE (avg)
8.93%
ROE (avg)
8.11%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
0
Price to Book Value
1.98
EV to EBIT
33.42
EV to EBITDA
18.25
EV to Capital Employed
1.80
EV to Sales
1.88
PEG Ratio
0.36
Dividend Yield
NA
ROCE (Latest)
5.38%
ROE (Latest)
4.66%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend27What is working for the Company
PBDIT(Q)
Highest at Rs 116.62 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 11.11%
PBT LESS OI(Q)
Highest at Rs 60.14 cr.
DEBT-EQUITY RATIO(HY)
Lowest at 0.28 times
NET SALES(Q)
At Rs 1,050.06 cr has Grown at 23.59%
PAT(Q)
Highest at Rs 78.32 cr.
EPS(Q)
Highest at Rs 8.36
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Sheela Foam
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 60.14 cr has Grown at 202.93%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 78.32 cr has Grown at 497.4%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 116.62 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 11.11% and Grown
each quarter in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 60.14 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
At Rs 1,050.06 cr has Grown at 23.59%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 78.32 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 8.36
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Lowest at 0.28 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
