NSEI:SFL

Stock Analysis Report

Executive Summary

Sheela Foam Limited manufactures and sells polyurethane foams primarily in India.


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

How has Sheela Foam's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

SFL

1.5%

IN Consumer Durables

-0.6%

IN Market


1 Year Return

28.7%

SFL

36.2%

IN Consumer Durables

11.1%

IN Market

Return vs Industry: SFL underperformed the Indian Consumer Durables industry which returned 36.2% over the past year.

Return vs Market: SFL exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

SFLIndustryMarket
7 Day1.5%1.5%-0.6%
30 Day18.4%6.4%-0.5%
90 Day27.6%15.4%3.0%
1 Year28.7%28.7%37.3%36.2%13.1%11.1%
3 Year55.6%55.6%50.1%47.6%24.5%18.0%
5 Yearn/a104.0%98.6%37.8%25.7%

Price Volatility Vs. Market

How volatile is Sheela Foam's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sheela Foam undervalued compared to its fair value and its price relative to the market?

40.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SFL (₹1671.5) is trading above our estimate of fair value (₹705.74)

Significantly Below Fair Value: SFL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SFL is poor value based on its PE Ratio (40.7x) compared to the Consumer Durables industry average (23x).

PE vs Market: SFL is poor value based on its PE Ratio (40.7x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: SFL is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: SFL is overvalued based on its PB Ratio (9.9x) compared to the IN Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Sheela Foam forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFL's forecast earnings growth (18.4% per year) is above the savings rate (6.5%).

Earnings vs Market: SFL's earnings (18.4% per year) are forecast to grow slower than the Indian market (21.5% per year).

High Growth Earnings: SFL's earnings are forecast to grow, but not significantly.

Revenue vs Market: SFL's revenue (13.9% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: SFL's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFL's Return on Equity is forecast to be high in 3 years time (23.2%)


Next Steps

Past Performance

How has Sheela Foam performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFL has a high level of non-cash earnings.

Growing Profit Margin: SFL's current net profit margins (9.1%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: SFL's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: SFL's earnings growth over the past year (55.9%) exceeds its 5-year average (16.3% per year).

Earnings vs Industry: SFL earnings growth over the past year (55.9%) exceeded the Consumer Durables industry 15.6%.


Return on Equity

High ROE: SFL's Return on Equity (24.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sheela Foam's financial position?


Financial Position Analysis

Short Term Liabilities: SFL's short term assets (₹7.3B) exceed its short term liabilities (₹2.7B).

Long Term Liabilities: SFL's short term assets (₹7.3B) exceed its long term liabilities (₹878.6M).


Debt to Equity History and Analysis

Debt Level: SFL's debt to equity ratio (3.5%) is considered satisfactory.

Reducing Debt: SFL's debt to equity ratio has reduced from 66.9% to 3.5% over the past 5 years.

Debt Coverage: SFL's debt is well covered by operating cash flow (583.4%).

Interest Coverage: SFL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SFL has a high level of physical assets or inventory.

Debt Coverage by Assets: SFL's debt is covered by short term assets (assets are 25.4x debt).


Next Steps

Dividend

What is Sheela Foam's current dividend yield, its reliability and sustainability?

0.22%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage0.4%forecastin3Years0.2%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SFL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SFL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SFL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SFL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SFL's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Rahul Gautam (66yo)

23.8yrs

Tenure

₹29,394,000

Compensation

Mr. Rahul Gautam has been a Managing Director of Sheela Foam Limited (also knoenas Sheela Foam Private Limited) since April 01, 1996 and serves its Chairman. Mr. Gautam personally looks after the Group's F ...


CEO Compensation Analysis

Compensation vs Market: Rahul's total compensation ($USD410.77K) is about average for companies of similar size in the Indian market ($USD386.20K).

Compensation vs Earnings: Rahul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rahul Gautam
Chairman & MD23.8yrs₹29.39m12.73% 10.3b
Dhruv Mathur
Chief Financial Officer0.3yrs₹12.11mno data
Md. Ahmad
Compliance Officer & Company Secretary0yrs₹1.45mno data
Rakesh Chahar
Head of Sales & Marketing and Whole-Time Director16.3yrs₹15.67mno data
Namita Gautam
Whole-Time Director16.3yrs₹15.90m11.72% 9.5b
Tushaar Gautam
Whole-Time Director12.8yrs₹16.57m37.08% 30.1b
Sheela Gautam
Founder & Chairperson Emeritus0yrsno datano data
Mahesh Gopalasamudram
Chief Operating Officer4.3yrs₹10.45mno data
Pertisth Mankotia
Chief Information Officer & Chief Human Resources Officer4.3yrsno datano data
Frank Van Gogh
CEO & Director of Joyce Foam Pty Ltd0yrsno datano data

4.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SFL's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rahul Gautam
Chairman & MD23.8yrs₹29.39m12.73% 10.3b
Rakesh Chahar
Head of Sales & Marketing and Whole-Time Director16.3yrs₹15.67mno data
Namita Gautam
Whole-Time Director16.3yrs₹15.90m11.72% 9.5b
Tushaar Gautam
Whole-Time Director12.8yrs₹16.57m37.08% 30.1b
Sheela Gautam
Founder & Chairperson Emeritus0yrsno datano data
Frank Van Gogh
CEO & Director of Joyce Foam Pty Ltd0yrsno datano data
Som Mittal
Non-Executive Independent Director3.7yrsno datano data
Vijay Chopra
Non-Executive Independent Director3.7yrsno datano data
Anil Tandon
Non-Executive Independent Director3.7yrsno datano data
Vijay Ahluwalia
Additional Non-Executive Independent Director1.9yrsno datano data

3.7yrs

Average Tenure

66yo

Average Age

Experienced Board: SFL's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sheela Foam Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sheela Foam Limited
  • Ticker: SFL
  • Exchange: NSEI
  • Founded: 1971
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: ₹81.218b
  • Shares outstanding: 48.78m
  • Website: https://www.sheelafoam.com

Number of Employees


Location

  • Sheela Foam Limited
  • 37/2, Site-IV
  • Sahibabad
  • Ghaziabad
  • Uttar Pradesh
  • 201010
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540203BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2016
SFLNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2016

Biography

Sheela Foam Limited manufactures and sells polyurethane foams primarily in India. The company provides various technical products, such as automotive, reticulated, silenctech, sound absorption, specialty, UV, rebounded, high resilience, pure grade, flame retardant, lamination grade, anti-static, UV stable, thermo-formable, hard and soft, and polyester grade foam products, as well as visco-elastic temperature sensitive materials. It also offers mattresses, pillows, mattress protectors, bolsters, back cushions, and furniture cushioning products. The company provides its products under the Sleepwell, Feather Foam, and Lamiflex brands. It sells its products for home use, as well as for hospitals, and hotel and hospitality institutions. The company distributes its products through distributors, dealers, and multi-branded outlets. It also exports its products to approximately 32 countries. Sheela Foam Limited was founded in 1971 and is based in Ghaziabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 13:11
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.