Current price is more than the intrinsic value

Intrinsic value

Stock has been generating better return on equity than bank FD

ROE vs FD rates

Stock doesn't offer attractive dividend returns

Dividend Returns

Good time to consider, as stock is not in overbought zone

Entry point

Stock not in ASM/GSM lists and not a lot of promoter holding is pledged

No Red Flags

Sheela Foam Standalone December 2022 Net Sales at Rs 569.19 crore, down 12.36% Y-o-Y

Sheela Foam consolidated net profit declines 9.48% in the December 2022 quarter

Sheela Foam stated in its exchange filing that the company is evaluating strategic opportunities for growth and expansion on an ongoing basis. Management in discussion with various parties, including Kurlon. ET Now reported on Dec.28 that Sheela Foam expected to acquire Kurlon for Rs 2,000cr. The Market share of the combined entity likely to be more than 50% of organized market and Indian mattress industry is estimated at Rs 15,000-17,000 cr. The deal might be EPS dilutive up to ~30/15% for FY23/24E, as per a note by Investec Securities. Synergies include greater distribution and more bargaining power against dealers.
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ET NOW Newsbreak Confirmed: Sheela Foam In Talks With Kurlon For Its Acquisition

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The combined entity will have a market share of more than 50 per cent in India’s organised mattress space

Sheela Foam to buy rival mattress maker Kurl-on for Rs 2,000 crore

Indian mattress maker Sheela Foam Ltd will soon acquire competitor Kurlon for 20 billion rupees ($241.29 million), ET Now reported on Wednesday, citing sources

Sheela Foam to buy rival mattress maker Kurlon for $241 million: Report

Kurlon sells Kurl-on branded mattresses and it has presence across India with more than 10,000 dealers, 72 branches and stock points. Kurlon also has nine manufacturing facilities across Karnataka, Odisha, Madhya Pradesh, Uttaranchal and Gujarat.

Sheela Foam to acquire rival mattress maker Kurlon for Rs 2,000 crore, says report

Sheela Foam Ltd has lost 1.52% over last one month compared to 4.85% fall in S&P BSE Consumer Durables index and 2.86% drop in the SENSEX

Sheela Foam Ltd Spurts 2.77%

Bombay Rayon will convene the board meeting to consider, approve and take on record the standalone and consolidated unaudited financial results of the company for the quarter and six months ended on 30 September, 2022.

Corporate Radar: Sheela Foam to go ex-bonus & more

With a market worth of ₹12,684.51 Cr, Sheela Foam Ltd. is a mid-cap company that specialises in consumer discretionary

Sheela Foam Ltd

Sheela Foam Ltd

Intrinsic value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Sheela Foam Standalone December 2022 Net Sales at Rs 569.19 crore, down 12.36% Y-o-Y

Sheela Foam consolidated net profit declines 9.48% in the December 2022 quarter

News Video

ET NOW Newsbreak Confirmed: Sheela Foam In Talks With Kurlon For Its Acquisition

Stocks that will see action on December 29, 2022

Stocks to Watch: KFin Tech, SBI, Airtel, RIL, Sheela Foam, McLeod Russel

Sheela Foam to buy rival mattress maker Kurl-on for Rs 2,000 crore

Sheela Foam to buy rival mattress maker Kurlon for $241 million: Report

Sheela Foam to acquire rival mattress maker Kurlon for Rs 2,000 crore, says report

Sheela Foam Ltd Spurts 2.77%

Sheela Foam Ltd

Intrinsic valueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry pointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Sheela Foam Standalone December 2022 Net Sales at Rs 569.19 crore, down 12.36% Y-o-Y

Sheela Foam consolidated net profit declines 9.48% in the December 2022 quarter

News Video

ET NOW Newsbreak Confirmed: Sheela Foam In Talks With Kurlon For Its Acquisition

Stocks that will see action on December 29, 2022

Stocks to Watch: KFin Tech, SBI, Airtel, RIL, Sheela Foam, McLeod Russel

Sheela Foam to buy rival mattress maker Kurl-on for Rs 2,000 crore

Sheela Foam to buy rival mattress maker Kurlon for $241 million: Report

Sheela Foam to acquire rival mattress maker Kurlon for Rs 2,000 crore, says report

Sheela Foam Ltd Spurts 2.77%

Intrinsic value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock