Sheela Foam

Why is Sheela Foam Ltd. falling/rising?

As of 07-Aug, Sheela Foam Ltd. is facing a stock price decline to 677.20, down 3.02%, with a total drop of 13.04% over the last two days. Despite strong financial results, the stock's bearish trend is driven by poor long-term growth outlook and underperformance compared to the market.

As of 07-Aug, Sheela Foam Ltd. is experiencing a decline in its stock price, currently at 677.20, reflecting a change of -21.1 or -3.02%. The stock has underperformed significantly, with a consecutive fall over the last two days resulting in a total drop of -13.04%. This decline is further highlighted by the stock's performance over the past week, where it has decreased by -13.59%, contrasting sharply with the Sensex, which has risen by +0.52% during the same period.<BR><BR>Despite the company reporting very positive financial results, including a remarkable growth in net profit of 1126.29% and positive results for the last three consecutive quarters, the stock's price is still falling. This can be attributed to a poor long-term growth outlook, as the operating profit has decreased at an annual rate of -2.67% over the last five years. Additionally, the stock is currently trading lower than its 5-day, 20-day, and 50-day moving averages, indicating a bearish trend in the short term.<BR><BR>Investor sentiment may also be affected by the stock's recent performance, as it has been losing value while the broader market has been stable or rising. Although there has been a notable increase in investor participation, with delivery volume rising by 294.74% against the 5-day average, this has not translated into a positive price movement. Overall, the combination of recent price declines, poor long-term growth prospects, and underperformance relative to the market contributes to the current downward trend in Sheela Foam Ltd.'s stock price.

Which are the latest news on Sheela Foam?

Should I buy, sell or hold Sheela Foam Ltd.?

Are Sheela Foam Ltd. latest results good or bad?

Sheela Foam Ltd.'s latest results show strong year-on-year revenue growth of 25.63% and a significant net profit increase of 839.45%, indicating strong demand. However, there are concerns with a 32.69% decline in net profit and slight contraction in operating margins compared to the previous quarter, suggesting challenges in maintaining profitability.

Sheela Foam Ltd.'s latest results present a mixed picture. On one hand, the company reported strong year-on-year revenue growth of 25.63%, reaching ₹1,031.94 crores, and a remarkable net profit increase of 839.45% to ₹61.44 crores compared to the same quarter last year. This indicates a significant recovery and strong demand for their products, particularly under the Sleepwell brand.<BR><BR>However, there are concerns regarding the sequential performance. The net profit saw a decline of 32.69% compared to the previous quarter, and operating margins also contracted slightly from 11.11% to 10.55%. This suggests that while the company is experiencing robust annual growth, it faces challenges in maintaining profitability on a quarter-to-quarter basis, possibly due to rising input costs or competitive pressures.<BR><BR>Overall, while the year-on-year performance is impressive and indicates a positive trend, the sequential declines in profitability and margins raise questions about the sustainability of this turnaround. Investors should approach with cautious optimism, keeping an eye on the company's ability to stabilize margins and improve operational efficiency in the coming quarters.

What does Sheela Foam do?

Sheela Foam Ltd. is a leading manufacturer of polyurethane foams in India, primarily in the furniture and home furnishing sector, with a market cap of INR 7,535 Cr and reported net sales of 1,050 Cr and net profit of 91 Cr for March 2026. The company has a P/E ratio of 50.00 and a debt-equity ratio of 0.23.

Overview:<BR>Sheela Foam Ltd. is a pioneer in the manufacturing of polyurethane foams in India, operating within the Furniture and Home Furnishing industry and classified as a Small Cap company.<BR><BR>History:<BR>Sheela Foam Ltd. is the flagship company of Sheela Group, known for its leadership in the mattress and foam industry. The latest quarterly results reported are for March 2026, showing significant sales and profit figures.<BR><BR>Financial Snapshot:<BR>- Net Sales: 1,050 Cr (Quarterly Results - Mar 2026)<BR>- Net Profit: 91 Cr (Quarterly Results - Mar 2026)<BR>- Market Cap: INR 7,535 Cr (Small Cap)<BR><BR>Key Metrics:<BR>- P/E: 50.00<BR>- Industry P/E: 46<BR>- Dividend Yield: 0.00%<BR>- Debt Equity: 0.23<BR>- Return on Equity: 4.66%<BR>- Price to Book: 2.28<BR><BR>Contact Details:<BR>- Address: C-55 Preet Vihar, New Delhi Delhi: 110092<BR>- Phone: 91-11-22026875<BR>- Email: iquebal.ahmed@sheelafoam.com<BR>- Website: http://www.sheelafoam.com

How big is Sheela Foam?

As of 10th June, Sheela Foam Ltd. has a market capitalization of 7,535.00 Cr and reported net sales of 3,820.84 Cr and net profit of 159.61 Cr over the latest four quarters.

As of 10th June, <BR><BR>Market Cap: Sheela Foam Ltd. has a market capitalization of 7,535.00 Cr, categorizing it as a Small Cap company.<BR><BR>Recent Quarterly Performance: The sum of Net Sales for the latest 4 quarters is 3,820.84 Cr, while the sum of Net Profit for the same period is 159.61 Cr.<BR><BR>Balance Sheet Snapshot: The reporting period for the latest annual data is March 2025. Shareholder's Funds stand at 3,035.20 Cr, and Total Assets are valued at 5,217.87 Cr.

Who are in the management team of Sheela Foam?

The management team of Sheela Foam includes Chairman Rahul Gautam, Managing Director Tushaar Gautam, and several Whole-time and Independent Directors, along with Company Secretary Md Iquebal Ahmad, who oversee the company's operations and strategic direction.

The management team of Sheela Foam includes the following members:<BR><BR>1. **Rahul Gautam** - Chairman & Whole-time Director<BR>2. **Tushaar Gautam** - Managing Director<BR>3. **Namita Gautam** - Whole-time Director<BR>4. **Rakesh Chahar** - Whole-time Director<BR>5. **Ravindra Dhariwal** - Independent Director<BR>6. **Som Mittal** - Independent Director<BR>7. **Anil Tandon** - Independent Director<BR>8. **Vijay Kumar Ahluwalia** - Independent Director<BR>9. **Meena Jagtiani** - Independent Director<BR>10. **Md Iquebal Ahmad** - Company Secretary & Compliance Officer<BR><BR>This team is responsible for overseeing the company's operations and strategic direction.

Who are the peers of the Sheela Foam?

Sheela Foam's peers include Milestone Furn., Responsive Industries, Hardwyn India, BirlaNu Ltd, Stanley Lifestyle, Tirupati Foam, Safe Enterprises, and Rexpro Enterprises. In terms of management risk, growth, and capital structure, Sheela Foam shows average performance, while Milestone Furn. leads in 1-year returns at 425.46%, and BirlaNu Ltd has the lowest at -46.09%.

Peers: The peers of Sheela Foam are Milestone Furn., Responsive Ind, Hardwyn India, BirlaNu Ltd, Stanley Lifesty., Tirupati Foam, Safe Enterprises, and Rexpro Enter.<BR><BR>Quality Snapshot: Excellent management risk is observed at Hardwyn India and Safe Enterprises, while Average management risk is found at Sheela Foam, Responsive Ind, BirlaNu Ltd, Stanley Lifesty., and Milestone Furn., and the rest. Below Average management risk is noted at Tirupati Foam and Rexpro Enter. Growth is Excellent at Safe Enterprises, while Average growth is seen at Sheela Foam, Responsive Ind, Hardwyn India, BirlaNu Ltd, Stanley Lifesty., and Milestone Furn., and the rest. Below Average growth is present at Tirupati Foam and Rexpro Enter. Good capital structure is noted at Sheela Foam, Responsive Ind, and Rexpro Enter, while Excellent capital structure is found at Hardwyn India, and Below Average capital structure is observed at BirlaNu Ltd, Stanley Lifesty., Tirupati Foam, and the rest.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Milestone Furn. at 425.46%, while the lowest is BirlaNu Ltd at -46.09%. Sheela Foam's 1-year return is 3.21%, which is significantly lower than Milestone Furn. but higher than BirlaNu Ltd. Additionally, several peers, including Responsive Ind, BirlaNu Ltd, Stanley Lifesty., Tirupati Foam, and Rexpro Enter, have negative six-month returns.

When is the next results date for Sheela Foam Ltd.?

The next results date for Sheela Foam Ltd. is 14 May 2026.

The next results date for Sheela Foam Ltd. is scheduled for 14 May 2026.

Is Sheela Foam overvalued or undervalued?

As of November 17, 2025, Sheela Foam is considered overvalued with a high PE ratio of 113.25, significantly exceeding peers like V-Guard Industries and Bata India, and has underperformed the Sensex with a year-to-date decline of 35.59%.

As of 17 November 2025, the valuation grade for Sheela Foam has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 113.25, an EV to EBIT of 85.93, and an EV to EBITDA of 28.01. These figures suggest that the stock is trading at a premium compared to its earnings and operational performance.<BR><BR>In comparison to peers, Sheela Foam's PE ratio significantly exceeds that of V-Guard Industries at 52.83 and Bata India at 69.25, both of which are also rated as attractive. This disparity highlights that Sheela Foam may be overextended in its valuation relative to its industry counterparts. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 35.59% compared to the Sensex's gain of 8.72%. This further reinforces the notion that Sheela Foam is overvalued in the current market environment.

Is Sheela Foam technically bullish or bearish?

As of November 10, 2025, Sheela Foam's technical trend is bearish with moderate strength, driven by bearish daily moving averages and Bollinger Bands, despite a mildly bullish MACD on longer time frames.

As of 10 November 2025, the technical trend has changed from mildly bearish to bearish. The current technical stance for Sheela Foam is bearish with moderate strength. Key indicators driving this stance include the daily moving averages showing bearish signals, and the weekly and monthly Bollinger Bands and KST also indicating bearish trends. While the MACD is mildly bullish on both weekly and monthly time frames, it is overshadowed by the overall bearish signals from other indicators. The stock has underperformed significantly compared to the Sensex over various periods, further supporting the bearish outlook.

How has been the historical performance of Sheela Foam?

Sheela Foam has experienced steady growth in net sales and total assets, increasing from 2,173.63 Cr in Mar'20 to 3,439.19 Cr in Mar'25. However, profitability has declined significantly, with profit after tax dropping from 240.16 Cr in Mar'21 to 88.90 Cr in Mar'25, alongside a decrease in earnings per share from 48.74 to 8.22.

Answer:<BR>The historical performance of Sheela Foam shows a fluctuating trend in key financial metrics over the years.<BR><BR>Breakdown:<BR>Sheela Foam's net sales have increased from 2,173.63 Cr in Mar'20 to 3,439.19 Cr in Mar'25, reflecting a steady growth trajectory. However, total operating income followed a similar trend, reaching 3,439.19 Cr in Mar'25 from 2,141.45 Cr in Mar'19. The raw material costs also rose significantly, from 1,088.10 Cr in Mar'20 to 1,980.17 Cr in Mar'25, impacting the operating profit, which decreased from 364.16 Cr in Mar'21 to 244.95 Cr in Mar'25. Profit before tax showed a decline from 323.85 Cr in Mar'21 to 103.31 Cr in Mar'25, while profit after tax fell from 240.16 Cr in Mar'21 to 88.90 Cr in Mar'25. The earnings per share (EPS) decreased from 48.74 in Mar'21 to 8.22 in Mar'25, indicating a significant drop in profitability. Total liabilities increased from 1,651.30 Cr in Mar'20 to 5,217.87 Cr in Mar'25, with total assets also rising to 5,217.87 Cr in Mar'25. Cash flow from operating activities decreased from 405.00 Cr in Mar'24 to 252.00 Cr in Mar'25, while cash flow from investing activities showed a substantial outflow of -2,258.00 Cr in Mar'24, indicating significant investment activity. Overall, while Sheela Foam has seen growth in sales and assets, profitability and cash flow have faced challenges in recent years.

Who are the top shareholders of the Sheela Foam?

The top shareholders of Sheela Foam include Tushaar Gautam, who holds 31.46%, followed by mutual funds at 18.03%, with SBI Magnum Midcap Fund as the largest public shareholder at 9.78%. Foreign Institutional Investors hold 6.23%, and individual investors account for 4.94%, with no pledged promoter holdings.

The top shareholders of Sheela Foam include the promoters, with Tushaar Gautam holding the highest stake at 31.46%. Additionally, mutual funds collectively hold 18.03% of the company, with the SBI Magnum Midcap Fund being the largest public shareholder at 9.78%. Foreign Institutional Investors (FIIs) hold 6.23%, and individual investors account for 4.94%. Notably, there are no pledged promoter holdings.

What is the bonus history of the Sheela Foam?

Sheela Foam's recent bonus history includes a 1:1 bonus issue announced on December 21, 2022, with a record date of December 22, 2022, allowing shareholders to receive one additional share for each share held.

Sheela Foam has a recent bonus history that includes a 1:1 bonus issue announced with an ex-date of December 21, 2022. The record date for this bonus was December 22, 2022. This means that shareholders received one additional share for every share they held as of the record date.

Has Sheela Foam declared dividend?

No Dividend History Available