Sheela Foam Ltd. (SFL) AI Stock Analysis

2 Followers

Sheela Foam Ltd.

(NSE:SFL)

Select Model

Rating:53Neutral

Price Target:INR 602.00▲(1.32% Upside)

Action:reiterated

Date:11/04/26

The stock is under significant pressure, primarily driven by extremely weak technicals with the price in a clear downtrend and oversold territory. This overshadows the company's fundamentally sound balance sheet and moderate valuation. Deteriorating profitability margins are a critical concern that must be reversed to support a higher score.

Positive Factors

Revenue GrowthSustained revenue growth, including a 2026 acceleration, indicates continued demand for the company’s branded sleep products and foam offerings. A growing top line can support operating scale, strengthen distribution reach, and provide a durable foundation for reinvestment over the next several quarters.

Negative Factors

Gross Margin CompressionMaterial gross-margin compression indicates that recent revenue growth is not being retained proportionally as gross profit. If this pressure persists, it can limit operating leverage, reduce funds available for brand and distribution investment, and make future earnings increasingly sensitive to product mix and cost conditions.

Sheela Foam Ltd. (SFL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 64.87B
Dividend Yield: 0.17%
Average Volume (3M): 22.59K
Price to Earnings (P/E): 25.8
Beta (1Y): 0.74
Revenue Growth: 19.60%
EPS Growth: 336.18%
Country: India
Employees: 3,300
Sector: General
Sector Strength: 55
Industry: Furnishings, Fixtures & Appliances

Sheela Foam Ltd. Business Overview & Revenue Model

Company Description

Sheela Foam Limited engages in the manufacture and sale of polyurethane foams and mattresses in India and internationally. The company provides various technical foams, such as automotive, reticulated, and ultraviolet stable foams. It also offers com...

How the Company Makes Money

SFL primarily makes money by manufacturing and selling (1) branded sleep products and (2) polyurethane foam and foam-based materials. Its largest monetization engine is the sale of Sleepwell-branded mattresses and related sleep accessories (e.g., pil...

Sheela Foam Ltd. Financial Statement Overview

Summary

Mixed financials: Strong revenue growth and a healthy, deleveraging balance sheet are offset by significant margin compression and low return on equity. Cash flow is improving but debt coverage remains weak.

Income Statement

45Neutral

Balance Sheet

75Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	42.01B	38.21B	34.39B	30.05B	28.73B	28.64B
Gross Profit	9.22B	8.48B	12.80B	11.43B	10.19B	9.25B
EBITDA	4.39B	3.93B	2.50B	4.40B	3.84B	3.94B
Net Income	2.51B	1.60B	960.90M	1.82B	1.99B	2.17B
Balance Sheet
Total Assets	51.69B	51.17B	54.67B	53.40B	27.11B	23.72B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.71B	5.18B	661.90M	7.55B	1.31B
Total Debt	8.53B	9.08B	14.62B	14.93B	5.71B	4.66B
Total Liabilities	18.05B	18.57B	23.72B	23.59B	11.02B	9.72B
Stockholders Equity	33.55B	32.52B	30.35B	29.20B	16.00B	13.93B
Cash Flow
Free Cash Flow	0	2.48B	1.33B	-19.43B	3.90M	336.93M
Operating Cash Flow	0	3.81B	2.52B	4.06B	2.12B	1.97B
Investing Cash Flow	0	2.84B	-288.20M	-22.58B	-2.68B	-3.06B
Financing Cash Flow	0	-6.75B	-2.26B	18.54B	561.20M	926.84M

Sheela Foam Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price594.15

Price Trends

50DMA612.23Negative

100DMA669.97Negative

200DMA617.37Negative

Market Momentum

MACD-12.20Negative

RSI54.54Neutral

STOCH92.71Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SFL, the sentiment is Neutral. The current price of 594.15 is above the 20-day moving average (MA) of 567.12, below the 50-day MA of 612.23, and below the 200-day MA of 617.37, indicating a neutral trend. The MACD of -12.20 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 92.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SFL.

Sheela Foam Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SFL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:NILKAMAL	68Neutral	INR 32.60B	20.95	―	0.90%	7.60%	52.13%
IN:CELLO	65Neutral	INR 83.21B	26.52	―	0.41%	4.64%	-7.77%
IN:EUREKAFORB	65Neutral	INR 72.49B	37.51	―	―	12.65%	3.20%
IN:CROMPTON	61Neutral	INR 138.76B	-77.43	―	1.42%	12.09%	-137.18%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SFL	53Neutral	INR 64.73B	25.83	―	0.17%	19.60%	336.18%
IN:SYMPHONY	38Underperform	INR 37.52B	-27.98	―	1.83%	2.27%	-203.08%

* General Sector Average

Performance Comparison

IN:SFL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SFL	Sheela Foam Ltd.	594.15	-41.79	-6.57%
IN:CELLO	Cello World Limited	364.20	-247.94	-40.50%
IN:CROMPTON	Crompton Greaves Consumer Electricals Ltd.	211.10	-60.04	-22.14%
IN:EUREKAFORB	Eureka Forbes Limited	371.30	-221.05	-37.32%
IN:NILKAMAL	Nilkamal Limited	2229.60	769.58	52.71%
IN:SYMPHONY	Symphony Limited	547.50	-322.53	-37.07%

Sheela Foam Ltd. Corporate Events

Sheela Foam Files SEBI Compliance Certificate for September Quarter

Oct 11, 2026

Sheela Foam Ltd. has submitted to BSE and NSE the quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the period ended September 30, 2026. The certificate, issued by its Registrar...

Sheela Foam Fully Redeems Unsecured Non-Convertible Debentures

Oct 6, 2026

Sheela Foam Ltd. has completed the final payment of interest and principal on its unsecured non-convertible debentures as of 6 October 2026. This action fully redeems all such debentures, leaving no unsecured non-convertible debentures outstanding.Th...

Sheela Foam Shareholders Clear Appointment of New Non-Executive Director via Postal Ballot

Sep 19, 2026

Sheela Foam Ltd. has announced that its shareholders have approved, via electronic postal ballot, the appointment of Ms. Avantika Singh Gautam as a Non-Executive, Non-Independent Director of the company. The ordinary resolution was passed with the re...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 04, 2026

Sheela Foam Ltd. AI Stock Analysis