Sheela Foam - An exciting branded play

[lohiyaakshay08]

Decent quarter - QoQ flattish revenue, but gross margins have improved due to price hike in Q4. Net profit has shot up as the company has moved from WDV to the straight-line depreciation method and increased the asset’s useful life, thereby reducing depreciation charges. Further, it is high due to the gain on sale of the asset. But overall, on the right track, but need to monitor how the company is dealing with increased raw material costs due to the West Asia crises

P.S - Wakefit & Duroflex also use the SLM for depreciation, but they have a useful life of 10-15 years vs 40 years, which the company will be using now, which will boost their profits

[hnk_so]

This is great example….how promoters and CFO can show optically excellent performance!

Though there is growth in volume and price but alone it can not have such an optically excellent result. Q1 will be real challange!

[mmvravindra]

When the tide goes out, you discover who’s been swimming naked.

Q4FY26: Wakefit and Sheela both have same margins but Sheela revenue 3x of Wakefit. QoQ Wakefit revenue down and Sheela stays flat.

Valuations are converging, today sheela up 5%+ and Wakefit down 5%

Sheela have new age business Furlenco which has turned profitable and growing at faster rate. Its value will be unlocked with IPO

Disclosure : Imvested in Sheela, views are biased

[Mayank.mail]

@mmvravindra

When the tide goes out, you discover who’s been swimming naked.

Difficult times like the current War situation, were expected to give SFL advantage due its larger size, but it must utilize this time to plan for future, since the war should not last much longer.. Hoping SFL is able to expand its OPM’s well past Wakefit in the coming quarters.

“One swallow does not make a summer” :)