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Sheela foam

Sheela Foam stock zooms after Q4FY18 PAT rises 93%

The company’s revenue (net if excise duty in the base quarter) grew by 12.2% to Rs527.9cr.

Shares of Sheela Foam (SFL) gained 2.2% after the company reported strong set of numbers for the quarter. Revenue (net if excise duty in the base quarter) grew by 12.2% to Rs527.9cr. Gross margin for the quarter improved by 240bps yoy to 42.5%. EBITDA, thus, jumped by 111.2% yoy to Rs52.3cr. EBITDA margin expanded by 465bps yoy to 9.9%. PAT grew by 92.7% yoy to Rs32.2cr.

The stock is currently trading at Rs1,320.05 up by Rs28.65 or 2.22% from its previous closing of Rs1,291.40 on the BSE.

The scrip opened at Rs1,326 and has touched a high and low of Rs1,398.25 and Rs1,285.10 respectively.

The company has launched STARLITE, economy model mattress, on all India basis from January 2018. It has also started a mid-price level mattress under its well-recognized Feather Foam brand from February 2018.

SFL sells through two segments in India – (a) B2C (mattresses, pillows, furniture cushioning, etc.), contributing ~82% of India revenue, and (b) B2B (technical foam for industries), contributing the rest. It manufactures PU foam in Australia through its subsidiary Joyce Foam, contributing 17% to consolidated revenue (FY17). It has 11 manufacturing facilities in India and 5 in Australia. Company’s FY17 margins were affected by combined effect of surge in prices of key raw material – Toluene Di-Isocyanate (TDI) and demonetization impact on volumes.

The stock is currently trading at Rs1,320.05 up by Rs28.65 or 2.22% from its previous closing of Rs1,291.40 on the BSE.

The scrip opened at Rs1,326 and has touched a high and low of Rs1,398.25 and Rs1,285.10 respectively.

The company has launched STARLITE, economy model mattress, on all India basis from January 2018. It has also started a mid-price level mattress under its well-recognized Feather Foam brand from February 2018.

SFL sells through two segments in India – (a) B2C (mattresses, pillows, furniture cushioning, etc.), contributing ~82% of India revenue, and (b) B2B (technical foam for industries), contributing the rest. It manufactures PU foam in Australia through its subsidiary Joyce Foam, contributing 17% to consolidated revenue (FY17). It has 11 manufacturing facilities in India and 5 in Australia. Company’s FY17 margins were affected by combined effect of surge in prices of key raw material – Toluene Di-Isocyanate (TDI) and demonetization impact on volumes.