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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sheela Foam Ltd

Basic Stock Data

Last Updated: June 19, 2024, 2:24 pm

Market Cap 10,196 Cr.
Current Price 938
High / Low1,370/854
Stock P/E61.6
Book Value 269
Dividend Yield0.00 %
ROCE9.07 %
ROE7.31 %
Face Value 5.00
PEG Ratio-18.81

Competitors of Sheela Foam Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Manali Petrochemicals Ltd 1,617 Cr. 94.096.2/55.972.2 61.70.73 %4.38 %2.13 % 5.00
AVI Polymers Ltd 4.97 Cr. 12.215.4/9.45248 11.90.00 %0.57 %0.41 % 10.0
Bhansali Engineering Polymers Ltd 2,561 Cr. 103118/81.614.2 37.03.89 %24.4 %18.1 % 1.00
Kothari Petrochemicals Ltd 793 Cr. 135170/74.012.4 41.90.93 %41.9 %29.2 % 10.0
Signet Industries Ltd 257 Cr. 87.397.4/42.516.6 74.80.57 %14.6 %7.24 % 10.0
Industry Average3,432.14 Cr208.7963.0362.331.21%17.06%11.72%6.86

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales733551786881737701722761729645613879845
Expenses649513676786665635644685651567547803765
Operating Profit843811095726678767878667681
OPM %11%7%14%11%10%9%11%10%11%12%11%9%10%
Other Income16181828161823281813243270
Interest554625557892527
Depreciation18191920242120222623223041
Profit before tax773310597625875776360605383
Tax %25%23%27%31%20%27%29%20%31%28%26%27%17%
Net Profit58257767494354614443443165
EPS in Rs5.962.547.836.855.044.315.446.204.434.414.052.835.94

Last Updated: June 10, 2024, 5:52 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:03 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,0921,2211,3591,5501,6801,8892,0662,1212,4372,8662,8732,982
Expenses1,0121,1361,2681,3741,4841,6721,8551,8212,0732,5502,5762,682
Operating Profit808591176196217211300364315297301
OPM %7%7%7%11%12%11%10%14%15%11%10%10%
Other Income140111623212828507986140
Interest23191612119101318172169
Depreciation3130282930354059738190116
Profit before tax403658152178193189256324296273256
Tax %22%23%26%31%29%31%29%24%26%26%26%24%
Net Profit312843105126134134194240219203184
EPS in Rs9.328.5713.1332.2212.8613.7013.7019.8224.3622.2720.6216.78
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-9.68%53.57%144.19%20.00%6.35%0.00%44.78%23.71%-8.75%-7.31%-9.36%
Change in YoY Net Profit Growth (%)0.00%63.25%90.61%-124.19%-13.65%-6.35%44.78%-21.06%-32.46%1.44%-2.05%

Growth

Compounded Sales Growth
10 Years:9%
5 Years:8%
3 Years:7%
TTM:4%
Compounded Profit Growth
10 Years:19%
5 Years:5%
3 Years:-10%
TTM:-12%
Stock Price CAGR
10 Years:%
5 Years:7%
3 Years:-6%
1 Year:-13%
Return on Equity
10 Years:17%
5 Years:14%
3 Years:11%
Last Year:7%

Last Updated: June 2, 2024, 9:11 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital16161616162424242424244954
Reserves1221531802293224395737068951,1601,3681,5522,808
Borrowings248214188146115594831310334466571573
Other Liabilities157183241289335395398401414551496531574
Total Liabilities5435676256797889181,0431,1621,6442,0692,3552,7024,008
Fixed Assets228268252286288318348412851894883865965
CWIP41117810365211833120287333
Investments5800100983182314116187681,965
Other Assets268290356385481564544432544732734782746
Total Assets5435676256797889181,0431,1621,6442,0692,3552,7024,008

Reserves and Borrowings Chart

Sheela Foam Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 6097124147159122134138157254197212
Cash from Investing Activity -4-30-27-49-342-80-246-287-208-306-267
Cash from Financing Activity -64-56-53-59-25-67-20-27157-329356
Net Cash Flow-81245401005734-1352713-171

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-134.00-103.00-55.0061.00137.00169.00180.00-10.0030.00-151.00-274.00300.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days433536312830282737453436
Inventory Days546461524959606081876471
Days Payable535257575264514655915855
Cash Conversion Cycle444740262425374163414051
Working Capital Days373119-3-10-471428283025
ROCE %16%14%19%38%39%35%28%26%23%18%14%

Financial Efficiency Indicators Chart

Sheela Foam Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters72.95%72.95%72.95%72.95%72.95%72.95%72.95%72.95%72.95%72.95%65.48%65.48%
FIIs1.29%1.33%1.43%2.03%2.53%3.11%3.16%3.19%3.26%3.21%6.04%6.12%
DIIs23.63%23.65%23.72%23.84%23.37%22.84%22.73%22.43%22.28%21.95%25.08%24.99%
Public2.13%2.07%1.90%1.18%1.15%1.10%1.14%1.43%1.50%1.89%3.40%3.40%
No. of Shareholders13,60013,38611,93617,80221,50318,23118,94525,29127,23230,57444,13739,444

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Emerging Equity Fund - Regular Plan3,372,5371.09418.331,220,4852024-06-17176.33%
SBI Magnum Midcap Fund3,249,9462.61403.121,220,4852024-06-17166.28%
SBI Small Cap Fund3,140,0001.64389.491,220,4852024-06-17157.27%
Kotak Small Cap Fund - Regular Plan1,927,6721.7239.111,220,4852024-06-1757.94%
DSP Mid Cap Fund1,806,3651.33224.061,220,4852024-06-1748%
UTI Flexi Cap Fund1,560,2410.73193.531,220,4852024-06-1727.84%
SBI Flexi Cap Fund1,355,7480.85168.171,220,4852024-06-1711.08%
DSP Small Cap Fund1,220,4851.12151.391,220,4852024-06-170%
Nippon India Small Cap Fund1,168,8310.33144.981,220,4852024-06-17-4.23%
Nippon India Multi Cap Fund942,3670.48116.891,220,4852024-06-17-22.79%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)17.6620.8144.8449.2339.83
Diluted EPS (Rs.)17.6620.8144.8449.2339.83
Cash EPS (Rs.)28.5530.0061.4064.1751.93
Book Value[Excl.RevalReserv]/Share (Rs.)274.21164.88287.03244.60190.15
Book Value[Incl.RevalReserv]/Share (Rs.)274.21164.88287.03244.60190.15
Revenue From Operations / Share (Rs.)274.36294.50611.24499.22445.57
PBDIT / Share (Rs.)38.4239.3480.7984.9569.78
PBIT / Share (Rs.)27.7730.1564.2370.0157.68
PBT / Share (Rs.)23.5427.9960.7566.3952.55
Net Profit / Share (Rs.)17.8920.8144.8449.2339.83
NP After MI And SOA / Share (Rs.)16.7820.6244.5548.7339.65
PBDIT Margin (%)14.0013.3513.2117.0115.66
PBIT Margin (%)10.1210.2310.5014.0212.94
PBT Margin (%)8.589.509.9313.2911.79
Net Profit Margin (%)6.527.067.339.868.93
NP After MI And SOA Margin (%)6.117.007.289.768.89
Return on Networth / Equity (%)6.2412.5615.6020.0721.03
Return on Capital Employeed (%)7.1614.5017.2722.2622.21
Return On Assets (%)3.417.429.1611.4511.71
Long Term Debt / Equity (X)0.320.170.160.110.17
Total Debt / Equity (X)0.430.290.240.170.21
Asset Turnover Ratio (%)0.740.961.151.101.51
Current Ratio (X)0.772.101.471.551.97
Quick Ratio (X)0.471.610.900.961.38
Inventory Turnover Ratio (X)4.724.504.824.175.02
Dividend Payout Ratio (NP) (%)0.000.510.670.000.00
Dividend Payout Ratio (CP) (%)0.000.350.480.000.00
Earning Retention Ratio (%)0.0099.4999.330.000.00
Cash Earning Retention Ratio (%)0.0099.6599.520.000.00
Interest Coverage Ratio (X)6.0918.2123.2223.4326.19
Interest Coverage Ratio (Post Tax) (X)3.5010.6413.8914.5816.87
Enterprise Value (Cr.)11515.5710146.4817260.679796.906489.62
EV / Net Operating Revenue (X)3.863.535.794.022.99
EV / EBITDA (X)27.5726.4443.8023.6419.06
MarketCap / Net Operating Revenue (X)3.433.385.693.962.91
Retention Ratios (%)0.0099.4899.320.000.00
Price / BV (X)3.506.0712.188.146.89
Price / Net Operating Revenue (X)3.433.385.693.962.91
EarningsYield0.010.020.010.020.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,235.52

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 31.72% compared to the current price 938

Intrinsic Value: 1,195.06

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 27.40% compared to the current price ₹938

Last 5 Year EPS CAGR: -3.28%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.50%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 16.83, which is a positive sign.
  3. The company has higher reserves (870.25 cr) compared to borrowings (331.25 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (1.50 cr) and profit (187.58 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 39.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Sheela Foam Ltd:
    1. Net Profit Margin: 6.52%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 7.16% (Industry Average ROCE: 14.51%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 6.24% (Industry Average ROE: 9.43%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.50
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.47
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 61.6 (Industry average Stock P/E: 73.18)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.43
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Sheela Foam Ltd. is a Public Limited Listed company incorporated on 18/06/1971 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1971PLC005679 and registration number is 005679. Currently Company is involved in the business activities of Manufacture of mattresses and pillows. Company’s Total Operating Revenue is Rs. 2124.44 Cr. and Equity Capital is Rs. 24.39 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Furniture, Furnishing & Flooring604 Ashadeep, New Delhi Delhi 110001iquebal.ahmad@sheelafoam.com
http://www.sheelafoam.com
Management
NamePosition Held
Mr. Rahul GautamChairman & Managing Director
Ms. Namita GautamExecutive Director
Mr. Ravindra DhariwalIndependent Director
Mr. Anil TandonIndependent Director
Mr. Rakesh ChaharExecutive Director
Lt. Gen.(Dr.) Vijay Kumar AhluwaliaIndependent Director
Ms. Meena JagtianiIndependent Director
Mr. Tushaar GautamExecutive Director
Mr. Som MittalIndependent Director

FAQ

What is the latest fair value of Sheela Foam Ltd?

The latest fair value of Sheela Foam Ltd is ₹1235.52.

What is the Market Cap of Sheela Foam Ltd?

The Market Cap of Sheela Foam Ltd is 10,196 Cr..

What is the current Stock Price of Sheela Foam Ltd as on 19 June 2024?

The current stock price of Sheela Foam Ltd as on 19 June 2024 is ₹938.

What is the High / Low of Sheela Foam Ltd stocks in FY 2024?

In FY 2024, the High / Low of Sheela Foam Ltd stocks is 1,370/854.

What is the Stock P/E of Sheela Foam Ltd?

The Stock P/E of Sheela Foam Ltd is 61.6.

What is the Book Value of Sheela Foam Ltd?

The Book Value of Sheela Foam Ltd is 269.

What is the Dividend Yield of Sheela Foam Ltd?

The Dividend Yield of Sheela Foam Ltd is 0.00 %.

What is the ROCE of Sheela Foam Ltd?

The ROCE of Sheela Foam Ltd is 9.07 %.

What is the ROE of Sheela Foam Ltd?

The ROE of Sheela Foam Ltd is 7.31 %.

What is the Face Value of Sheela Foam Ltd?

The Face Value of Sheela Foam Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Sheela Foam Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE