Sheela Foam Ltd.
ISIN: INE916U01025 • Market Cap: ₹7,404 Cr
The 5-Pillar Quality Audit for Sheela Foam Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (10.6%), Return on Capital Employed (7.5%), and equity compounding (4.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.22 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (10.6%) and 3Y PAT CAGR (2.0%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 34.52 vs PEG of 0.95 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 65.4%, backed by 22.7% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Mid Cap)
Established player in the Consumer Durables sector with an overall fundamental quality score of 63/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 7.5%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Sectoral & Macro Headwinds (Consumer Durables)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Durables space.
Quantitative Strategy Eligibility
Checking SFL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 63/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Durables Sector Peer Comparison
Compare SFL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Sheela Foam Ltd. (SFL)Current | 63/100 | ₹7,404 Cr | 34.52 | 7.5% | 0.22 | — |
| Titan Company Ltd. (TITAN) | 70/100 | ₹4.50 Lakh Cr | 78.05 | 39.2% | 1.76 | View |
| Asian Paints Ltd. (ASIANPAINT) | 67/100 | ₹2.51 Lakh Cr | 52.73 | 24.4% | 0.11 | View |
| LG Electronics India Ltd. (LGEINDIA) | 65/100 | ₹1.12 Lakh Cr | 61.16 | 28.4% | 0.00 | View |
| Dixon Technologies (India) Ltd. (DIXON) | 82/100 | ₹88,626 Cr | 47.21 | 30.1% | 0.07 | View |
| Havells India Ltd. (HAVELLS) | 70/100 | ₹80,202 Cr | 49.11 | 22.7% | 0.00 | View |
Frequently Asked Questions: Sheela Foam Ltd.
Q:What is the 5-Pillar Fundamental Score for Sheela Foam Ltd. (SFL)?
Sheela Foam Ltd. has a RupeeTools Fundamental Score of 63/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (37/100), Financial Health (74/100), Growth (55/100), Valuation (82/100), and Ownership Quality (82/100).
Q:Is SFL fundamentally strong for long-term investment?
SFL currently holds a moderate quality rating of 63/100. While it operates in the Consumer Durables sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does SFL pass the Coffee Can Investing filter?
No. SFL does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does SFL compare against other Consumer Durables peers?
Within India's Consumer Durables sector, SFL trades at a P/E of 34.52 and generates an ROCE of 7.5%. Compare its 5-Pillar score of 63/100 against top sector peers like Titan Company Ltd. (70/100), Asian Paints Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.