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Sheela Foam Limited (SFL) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹72.7B (≈ $770M) · ISIN INE916U01025

What is Sheela Foam Limited really worth?

SF Sheela Foam Limited SFL · BSE
Price₹646.80
Fair Value₹321.55
Upside−50.3%
Quality67/100

A solid business, but trading 101% above our fair value of ₹321.55.

As of Aug 23, 2026, the fair value of Sheela Foam Limited is ₹321.55 per share against a price of ₹646.80, so the fair value sits 50% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Healthy Growth (revenue 5y +15.1 %/yr)
Low debt · generates free cash flow

Risks

!Thin margins · 5.3% net margin
!Trails peers (3/14)
!Narrow moat 35/100
!Weak on past: 13 out of 100
Evidence: High Range ₹236.18 – ₹401.94

Fair value as of: Aug 23, 2026

From 26 valuation models · updated 14 days ago

Share price −16.3% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹401.94). The favourable scenario is already priced in.
  • Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

₹1,967 ₹466.22 Fair Value ₹321.55 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.

How to read this chart

60‑month range ₹466.22 – ₹1,967 · fair‑value band ₹236.18 – ₹401.94 · the ₹646.80 price screens above the ₹321.55 fair value. Dashed = 300-day average. As of Aug 23, 2026.

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Analysis

Sheela Foam Limited (SFL) currently trades at ₹646.80, while our model-based Fair Value estimate is ₹321.55, implying the stock looks roughly 101.2% overvalued today. The Quality Score stands at 67/100 (solid quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of ₹395.48 per share, and 0 of the 26 models we run sit above the ₹646.80 price. Bear case: the Earnings-Based group reads lowest at ₹134.03, and 26 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Sheela Foam Limited generated revenue of ₹40.3B at a net margin of 5.3%. Revenue grew 25.6% year over year. It earns a return on equity of 5.1%. Net debt stands at ₹6.8B. Fundamentals as of Aug 23, 2026

Our scenario range runs from ₹236.18 (bear case) to ₹401.94 (bull case); at ₹646.80, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high and 41% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −9% fair-value upside, at −50%, SFL screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ₹13.37 per share, which is 4.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence ₹295.37 ₹499.08 ₹830.84 78
Growth DCF ₹296.96 ₹493.37 ₹810.33 76
Residual Income ₹226.16 ₹226.09 ₹212.98 76
All 26 models by family
DCF Models
FCF DCF best evidence ₹295.37 ₹499.08 ₹830.84 78
Owner Earnings ₹216.67 ₹367.17 ₹612.25 74
5Y Revenue Exit ₹226.70 ₹368.93 ₹553.80 72
5Y EBITDA Exit ₹305.24 ₹523.11 ₹786.03 74
5Y P/E Exit ₹240.22 ₹395.48 ₹564.08 70
10Y Revenue Exit ₹241.39 ₹380.75 ₹577.01 66
10Y EBITDA Exit ₹299.02 ₹490.65 ₹762.49 67
10Y P/E Exit ₹256.77 ₹399.67 ₹585.22 63
Earnings-Based
Graham-Dodd ₹99.39 ₹383.57 ₹519.98 64
Lynch FV ₹93.82 ₹134.03 ₹174.24 61
PEG = 1.0 ₹93.82 ₹134.03 ₹174.24 57
EPV ₹140.10 ₹164.42 ₹185.70 74
Dividend Discount
Gordon GGM ₹0.0800 ₹0.1600 ₹0.2500 66
DDM Multi-Stage ₹0.0800 ₹0.1300 ₹0.1700 66
Multiples
P/E Multiple ₹241.16 ₹321.55 ₹401.94 63
P/S Multiple ₹186.35 ₹248.47 ₹310.59 58
P/B Multiple ₹186.35 ₹248.47 ₹310.59 55
EV/EBIT ₹297.00 ₹397.94 ₹498.89 66
EV/EBITDA ₹343.23 ₹459.58 ₹575.94 67
EV/Revenue ₹198.29 ₹285.78 ₹373.27 53
Asset-Based
NCAV (Graham) ₹148.89 ₹199.52 ₹297.79 54
Growth DCF
Growth DCF ₹296.96 ₹493.37 ₹810.33 76
Rev-Margin DCF ₹226.70 ₹368.68 ₹542.47 72
Economic Profit
Residual Income ₹226.16 ₹226.09 ₹212.98 76
ROIC Compounder ₹140.10 ₹164.42 ₹185.70 72
Growth Earnings
Growth-Adj P/E ₹174.10 ₹248.71 ₹323.32 67

Widest divergence: DCF Models (₹395.48) versus Dividend Discount (₹0.1300). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 33.0
P/S ratio 1.38 P/E × margin
EPS (TTM) ₹19.60 price ÷ EPS = P/E 33.0
Net margin 4.2% FY2025
Return on equity 5.1% TTM
Return on assets (EBIT) 11.3% avg 5y
More key figures
Profitability
Operating margin 7.3% TTM
Growth
Revenue (TTM) ₹40.3B TTM
Revenue growth (YoY) +25.6% 3y avg +3.0%
EPS growth (YoY) +727%
Balance sheet & cash flow
Free cash flow ₹2.7B FY2025
Net debt ₹6.8B FY2025 · ≈ 2.5 yrs of FCF

Figures from reported company fundamentals · as of Aug 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 65 · Market factors (momentum, volatility) 51

Profitability 39
Margins and returns on capital today
Quality Growth 67
Are margins and returns improving?
Cashflow 60
Earnings quality: real cash, not paper profit
Fin. Strength 61
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 36
Distance to the 52-week high (market factor)
Net Issuance 90
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Sheela Foam Limited engages in the manufacture and sale of polyurethane foams and mattresses in India and internationally.

Full 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 products, such as automotive, reticulated, silentech, sound absorption, specialty, UV, visco-elastic, rebounded, high resilience, pure grade, flame retardant, lamination grade, anti-static, UV stable, thermos-formable, hard, soft, quilting foams, and lamiflex foam. It also offers pillows, mattresses, protectors, bolsters, back cushions, and furniture cushioning products. The company distributes its products through distributors, dealers, retailers, and multi-brand outlets under SLEEPWELL, FEATHER FOAM, and LAMIFLEX brand name. Sheela Foam Limited was incorporated in 1971 and is headquartered in Noida, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sheela Foam Limited reported revenue of ₹38.1B in FY2025 versus ₹27.0B in FY2021, a compound +9.0%/yr. Reported net income was ₹1.6B in FY2025, compounding −7.4%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
₹38.1B
Latest YoY
+7.8%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.1%
Avg. revenue growth/yr (9Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.3%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+4.0% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+4.0%
Dividend yield0.0%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 4.0% vs 10Y 15.0%, flattening
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9.7% (2020) → 6.4% (2025) · falling
Worst earnings drop87% (2023) · in INR
Revenue +9.0%/yr
FY21 ₹27.0B
FY22 ₹34.9B
FY23 ₹34.2B
FY24 ₹35.4B
FY25 ₹38.1B
Net income −7.4%/yr
FY21 ₹2.2B
FY22 ₹11.2B
FY23 ₹1.4B
FY24 ₹1.6B
FY25 ₹1.6B

SFL screens 101% overvalued. Compare with Midea Group →

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Cite: Fair Value Calculator (2026). "Sheela Foam Limited Fair Value". https://www.fairvalue-calculator.com/stock/SFL.BSE

Peer Group

Furnishings, Fixtures & Appliances · 317 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 66 · Top 25%
Fair Value upside −52% · Below median
Return on equity (TTM) 5% · Above median
Return on assets 3% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 7% · Above median
Revenue growth 26% · Top 25%
Debt / equity 0.03× · Lower than median

Valuation Multiples vs Furnishings, Fixtures & Appliances median · lower = cheaper

P/E (TTM) 33.0× · Pricier than median
P/B 2.23× · Pricier than median
P/S (TTM) 1.80× · Pricier than 75% of peers
P/FCF 0.3× · Cheaper than 75% of peers
EV/EBITDA 18.1× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE40 · sector 31
FUTURE0 · sector 24
PAST13 · sector 28
HEALTH0 · sector 89
DIVIDEND100 · sector 53

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Furnishings, Fixtures & Appliances stocks, each showing price versus our Fair Value estimate (as of Aug 23, 2026).

Stock Price Fair Value vs Fair Value
Midea Group 000333 ¥86.98 ¥99.66 +15%
Gree Electric Appliances, Inc 000651 ¥41.58 ¥86.91 +109%
Haier Smart Home Co 600690 ¥21.79 ¥36.04 +65%
King Slide Works Co 2059 12,500 TWD 1,917 TWD −85%
Guangdong Songfa Ceramics Co 603268 ¥173.26 ¥38.83 −78%
SharkNinja, Inc SN $181.24 $89.07 −51%
Somnigroup International Inc SGI $63.65 $31.69 −50%
Mohawk Industries, Inc MHK $131.70 $119.26 −9%
Hisense Home Appliances Group 000921 ¥26.12 ¥50.62 +94%
Alliance Laundry Holdings ALH $22.73 $7.74 −66%

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Frequently asked questions

Is Sheela Foam Limited (SFL) overvalued or undervalued?
As of Aug 23, 2026, our model estimates a fair value of ₹321.55 versus a price of ₹646.80, about −50% upside (overvalued).
What is the fair value of SFL?
Our model-based fair value for Sheela Foam Limited is ₹321.55 (as of Aug 23, 2026), built from audited fundamentals. The current price: ₹646.80.
What is the quality score of SFL?
Sheela Foam Limited has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Sheela Foam Limited (SFL)?
Our model-based price target is the fair value of ₹321.55 (as of Aug 23, 2026) from 26 valuation models. Cautious scenario ₹236.18, optimistic scenario ₹401.94. It is a calculation from audited fundamentals, not an analyst target.
What is the Sheela Foam Limited stock forecast for 2026?
Our models put fair value at ₹321.55, about −50% upside versus a price of ₹646.80 (overvalued). Cautious scenario ₹236.18, optimistic scenario ₹401.94. The calculation is refreshed regularly with new filings.
What is the revenue of Sheela Foam Limited (SFL)?
Sheela Foam Limited reported trailing-twelve-month revenue of about ₹40.3B (latest available figure, as of Aug 23, 2026).
What is the net profit margin of SFL?
The net profit margin of Sheela Foam Limited is about 5.3%, meaning it keeps roughly 5.3% of revenue as net income. Based on the latest reported figures.
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