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Sheela Foam Ltd

NSE: SFL BSE: 540203

516

(-0.77%)

Fri, 27 Mar 2026, 06:24 pm

Sheela Foam Analysis

dividend

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Pros

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    Cons

    • No need to calculate the sustainability of Sheela Foam's dividends in 3 years as they are not expected to pay a notable one for India.
    • Unable to evaluate Sheela Foam's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate Sheela Foam's dividend against the top 25% market benchmark as the company has not reported any payouts.

    future

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    Pros

    • Cash flow for Sheela Foam is expected to increase by more than 50% in 2 years time.
    • Sheela Foam's earnings growth is expected to exceed the India market average.
    • Sheela Foam's earnings growth is expected to exceed the low risk savings rate of 7.2%.
    • Performance (ROE) is expected to be above the current IN Consumer Durables industry average.
    • Sheela Foam's revenue growth is expected to exceed the India market average.
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    Cons

    • Sheela Foam's earnings are expected to grow by 19% yearly, however this is not considered high growth (20% yearly).
    • Sheela Foam's earnings are expected to decrease over the next year.
    • Sheela Foam's net income is expected to increase but not above the 50% threshold in 2 years time.
    • Sheela Foam is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • A decline in Sheela Foam's performance (ROE) is expected over the next 3 years.
    • Sheela Foam's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • Sheela Foam's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

    health

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    Pros

    • Sheela Foam is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Sheela Foam is profitable, therefore cash runway is not a concern.
    • Sheela Foam is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (583.4%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 25.4x debt.
    • Sheela Foam's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (66.9% vs 3.5% today).
    • Sheela Foam earns more interest than it pays, coverage of interest payments is not a concern.
    • Sheela Foam's level of debt (3.5%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • High level of physical assets or inventory.

    management

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    Pros

    • The tenure for the Sheela Foam board of directors is about average.
    • Rahul's remuneration is about average for companies of similar size in India.
    • Rahul's compensation has been consistent with company performance over the past year, both up more than 20%.
    • The tenure for the Sheela Foam management team is about average.
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    Cons

      misc

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      Pros

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        Cons

        • Sheela Foam is covered by less than 3 analysts.

        past

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        Pros

        • Sheela Foam's 1-year earnings growth exceeds its 5-year average (55.9% vs 16.3%)
        • Sheela Foam's year on year earnings growth rate has been positive over the past 5 years.
        • Sheela Foam used its assets more efficiently than the IN Consumer Durables industry average last year based on Return on Assets.
        • Sheela Foam has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
        • Sheela Foam's earnings growth has exceeded the IN Consumer Durables industry average in the past year (55.9% vs 14.3%).
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        Cons

        • Sheela Foam's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

        value

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        Pros

        • 540203 outperformed the Consumer Durables industry which returned 5.6% over the past year.
        • 540203 outperformed the Market in India which returned -14.5% over the past year.
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        Cons

        • Sheela Foam's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
        • Sheela Foam's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
        • Sheela Foam is overvalued based on assets compared to the IN Consumer Durables industry average.
        • Sheela Foam is poor value based on expected growth next year.
        • Sheela Foam is overvalued based on earnings compared to the IN Consumer Durables industry average.
        • Sheela Foam is overvalued based on earnings compared to the India market.
        • BSE:540203 is up 2.1% underperforming the Consumer Durables industry which returned 6.7% over the past month.
        • BSE:540203 is up 2.1% underperforming the market in India which returned 8% over the past month.

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