Sheela Foam stock price tanks 9% on weak Q1FY25 operational performance

Sheela Foam stock plunges: Shares of Sheela Foam fell as much as 8.52 per cent to hit an intraday low of Rs 913.55 per share on Monday, August 5, 2024..

However, at 11:33 AM, shares of Sheela Foam were off lows, and were trading 3.85 per cent lower at Rs 960.20. In comparison, BSE Sensex was trading 3.04 per cent lower at 78,517.23 levels.

The fall came after the company posted a weak set of operational performance in the June quarter of FY25 (Q1FY25).

The companys’ earnings before interest, tax, depreciation and amortisation (Ebitda) fell 23 per cent year-on-year to Rs 59.9 crore in the June quarter of financial year 2025 (Q1FY25), from Rs 77.6 crore in the same quarter last year (Q1FY24).

The margin also contracted 460 basis points (bps) to 7.4 per cent in the June quarter of FY25, from 12 per cent in the June quarter of FY24.

That apart, the company saw its profit jump 7 per cent Y-o-Y to Rs 46 crore in Q1FY25, from Rs 43.1 crore in the same quarter a year ago. 

The revenue from operations, or top line, zoomed 25.5 per cent Y-o-Y to Rs 809.8 crore in Q1FY25, from Rs 645 crore in the same quarter last year. 

Sheela Foam focuses on manufacturing a diverse range of foam products. Established in 1971, the company is best known for its flagship brand, Sleepwell, which offers high-quality mattresses and sleep solutions. 

Sheela Foam focuses on innovation, employing advanced technology to ensure durability and comfort. Its product line extends beyond mattresses to include cushions, pillows, and furniture foam, catering to both residential and commercial needs. 

With a strong commitment to quality and customer satisfaction, Sheela Foam has built a robust presence in the Indian market and continues to expand its reach internationally.

The market capitalisation of the company is Rs 10,428.42 crore, according to the Bombay Stock Exchange (BSE). The company falls under the BSE 500 category.

The 52-week high of the stock is Rs 1,297.35 while its 52-week low is Rs 856.05 apiece.