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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Sheela Foam Ltd

About the Company - Sheela Foam Ltd

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
Petrochemicals - Polymers604 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

Sheela Foam Ltd. Share Price Update

Share PriceValue
Today₹1,093.30
Previous Day₹1,123.05

Basic Stock Data of Sheela Foam Ltd

Market Cap 11,576 Cr.
Current Price 1,065
High / Low1,370/906
Stock P/E67.7
Book Value 263
Dividend Yield0.00 %
ROCE13.6 %
ROE12.5 %
Face Value 5.00

Data Source: screener.in

Competitors of Sheela Foam Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Signet Industries Ltd 222 Cr. 75.690.0/32.213.4 71.80.64 %12.4 %6.48 % 10.0
Manali Petrochemicals Ltd 1,238 Cr. 72.087.2/56.770.9 61.01.06 %7.54 %4.89 % 5.00
Supreme Petrochem Ltd 13,766 Cr. 732758/35136.7 98.91.11 %37.4 %28.1 % 2.00
NOCIL Ltd 4,606 Cr. 276298/19938.4 99.01.07 %13.4 %9.89 % 10.0
Bhansali Engineering Polymers Ltd 2,465 Cr. 99.0118/58.016.1 35.83.05 %19.1 %13.3 % 1.00
Industry Average48.4 Cr250.9235.173.31.39%17.97%12.53%5.6

Sheela Foam Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales608826733551786881737701722761729645613
Expenses501682649513676786665635644685652567547
Operating Profit10614484381109572667876777866
OPM %18%17%11%7%14%11%10%9%11%10%11%12%11%
Other Income9161618182816182328181324
Interest4555462555789
Depreciation17201819192024212022262322
Profit before tax9413577331059762587577636060
Tax %26%26%25%23%27%31%20%27%29%20%27%28%26%
Net Profit701005825776749435461464344
EPS in Rs7.0710.175.962.547.836.855.044.315.446.204.664.414.05

Sheela Foam Ltd Quarterly Chart

Sheela Foam Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9871,0921,2211,3591,5501,6801,8892,0662,1212,4372,8662,8732,748
Expenses9311,0121,1361,2681,3741,4841,6721,8551,8212,0732,5502,5762,451
Operating Profit56808591176196217211300364315297297
OPM %6%7%7%7%11%12%11%10%14%15%11%10%11%
Other Income614011162321282850798684
Interest2423191612119101318172128
Depreciation25313028293035405973819093
Profit before tax12403658152178193189256324296273260
Tax %35%22%23%26%31%29%31%29%24%26%26%26%
Net Profit8312843105126134134194240219203195
EPS in Rs2.349.328.5713.1332.2212.8613.7013.7019.8224.3622.2720.6219.32
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Sheela Foam Ltd Profit & Loss Yearly Chart

Sheela Foam Ltd Growth

Compounded Sales Growth
10 Years:10%
5 Years:9%
3 Years:11%
TTM:-2%
Compounded Profit Growth
10 Years:20%
5 Years:7%
3 Years:0%
TTM:-17%
Stock Price CAGR
10 Years:%
5 Years:11%
3 Years:2%
1 Year:-7%
Return on Equity
10 Years:20%
5 Years:18%
3 Years:16%
Last Year:13%

Sheela Foam Ltd 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

Sheela Foam Ltd 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

Sheela Foam Ltd 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%

Sheela Foam Ltd 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

Sheela Foam Ltd Shareholding Pattern Chart

No. of Sheela Foam Ltd Shareholders

Sheela Foam Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Emerging Equity Fund - Regular Plan33725371.09418.33
SBI Magnum Midcap Fund32499462.61403.12
SBI Small Cap Fund31400001.64389.49
Kotak Small Cap Fund - Regular Plan19276721.7239.11
DSP Mid Cap Fund18063651.33224.06
UTI Flexi Cap Fund15602410.73193.53
SBI Flexi Cap Fund13557480.85168.17
DSP Small Cap Fund12204851.12151.39
Nippon India Small Cap Fund11688310.33144.98
Nippon India Multi Cap Fund9423670.48116.89

Sheela Foam Ltd ROCE Trend

Sheela Foam Ltd EPS Trend

Sheela Foam Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)20.8144.8449.2339.8327.41
Diluted EPS (Rs.)20.8144.8449.2339.8327.41
Cash EPS (Rs.)30.0061.4064.1751.9335.52
Book Value[Excl.RevalReserv]/Share (Rs.)164.88287.03244.60190.15149.66
Book Value[Incl.RevalReserv]/Share (Rs.)164.88287.03244.60190.15149.66
Revenue From Operations / Share (Rs.)294.50611.24499.22445.57438.98
PBDIT / Share (Rs.)39.3480.7984.9569.7848.91
PBIT / Share (Rs.)30.1564.2370.0157.6840.80
PBT / Share (Rs.)27.9960.7566.3952.5538.83
Net Profit / Share (Rs.)20.8144.8449.2339.8327.41
NP After MI And SOA / Share (Rs.)20.6244.5548.7339.6527.41
PBDIT Margin (%)13.3513.2117.0115.6611.14
PBIT Margin (%)10.2310.5014.0212.949.29
PBT Margin (%)9.509.9313.2911.798.84
Net Profit Margin (%)7.067.339.868.936.24
NP After MI And SOA Margin (%)7.007.289.768.896.24
Return on Networth / Equity (%)12.5615.6020.0721.0318.31
Return on Capital Employeed (%)14.5017.2722.2622.2124.28
Return On Assets (%)7.429.1611.4511.7111.51
Long Term Debt / Equity (X)0.170.160.110.170.01
Total Debt / Equity (X)0.290.240.170.210.03
Asset Turnover Ratio (%)0.961.151.101.511.76
Current Ratio (X)2.101.471.551.972.00
Quick Ratio (X)1.610.900.961.381.46
Inventory Turnover Ratio (X)4.504.824.175.026.21
Dividend Payout Ratio (NP) (%)0.510.670.000.000.00
Dividend Payout Ratio (CP) (%)0.350.480.000.000.00
Earning Retention Ratio (%)99.4999.330.000.000.00
Cash Earning Retention Ratio (%)99.6599.520.000.000.00
Interest Coverage Ratio (X)18.2123.2223.4326.1924.79
Interest Coverage Ratio (Post Tax) (X)10.6413.8914.5816.8714.90
Enterprise Value (Cr.)10146.4817260.679796.906489.626146.26
EV / Net Operating Revenue (X)3.535.794.022.992.87
EV / EBITDA (X)26.4443.8023.6419.0625.76
MarketCap / Net Operating Revenue (X)3.385.693.962.912.87
Retention Ratios (%)99.4899.320.000.000.00
Price / BV (X)6.0712.188.146.898.41
Price / Net Operating Revenue (X)3.385.693.962.912.87
EarningsYield0.020.010.020.030.02

Sheela Foam Ltd Profitability Ratios (%)

Sheela Foam Ltd Liquidity Ratios

Sheela Foam Ltd Liquidity Ratios (%)

Sheela Foam Ltd Interest Coverage Ratios (X)

Sheela Foam Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sheela Foam Ltd

Fair Value: ₹2270.15

The stock is undervalued by 113.16% compared to the current price ₹1065

*Investments are subject to market risks

Strength and Weakness of Sheela Foam Ltd

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 (808.23 cr) compared to borrowings (254.08 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (77.31 cr) and profit (174.38 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 52.57 and average Dividend Yield of 11.40%.
  2. The stock has a high average Cash Conversion Cycle of 39.92, which may not be favorable.

Should I Buy Sheela Foam Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sheela Foam Ltd:
    1. Net Profit Margin: 7.06%
      • 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: 14.50% (Industry Average ROCE: 21.15%)
      • 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. Interest Coverage Ratio (Post Tax): 10.64
      • 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.
    4. Quick Ratio: 1.61
      • 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.
    5. ✗ Stock P/E: 67.7 (Industry average Stock P/E: 29.84)
      • 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.
    6. ✓ Total Debt / Equity: 0.29
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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