The shares of the leading mattress manufacturer gained 6.3% to ₹1,006.95 per share on Friday after it was granted an insurance claim of ₹21.38 crore.
At 1:55 p.m., Sheela Foam Ltd shares were trading at ₹976.95 a share on the National Stock Exchange, up 3.18% from the previous close price, and the company has a market capitalization of ₹10,610 crores.
According to the official filing of the company, the District Consumer Disputes Redressal Commission, East Delhi, ruled in favor of Sheela Foam company regarding an insurance claim.
The company has been granted compensation totaling ₹21.38 crores, alongside an interest rate of 10% from the date of rejection, which was July 27, 2020. Furthermore, they have been awarded ₹7,50,000 for mental distress and losses, as well as ₹2,50,000 for legal expenses.
Shares of Sheela Foam Ltd have experienced a 9 percent decrease over the past six months and a 3.5 percent decline over the last 12 months.
Sheela Foam Limited is a leading player in India’s mattress and foam products industry and a leader in Polyurethane (PU) Foam. It has a nationwide presence in manufacturing PU Foam with a track record.The company markets it brand under the name of ‘Sleepwell’ mattresses a household Brand and one of the most trusted brands in India.
In 2023, Sheela Foam Limited made a significant stride by acquiring Kurlon Enterprises Limited (KEL), propelling itself to the forefront of the branded mattress segment, commanding over 30% market share.
Additionally, the company ventured into the branded furniture market by acquiring a 35% stake in Furlenco, a platform facilitating furniture rental and purchase. This strategic move tapped into a larger market potential compared to its existing domain.
This amalgamation has expanded the company’s manufacturing footprint globally, boasting 21 manufacturing plants across India, 5 in Australia, and 1 in Spain. With a consolidated market share of 70% in the North, 75% in the West, 50% in the South, and 60% in the East, the combined entity has cemented a robust presence in all regions.
Furthermore, the merged entities boast extensive sales and distribution networks across India, comprising 100+ exclusive distributors, 6,100+ Exclusive Retail Dealers (EBOs), and 12,000+ Multi-Brand Outlets (MBOs).
With 21 manufacturing facilities nationwide and a total foaming capacity of 1,46,000 MTPA, the combined entity ensures comprehensive coverage throughout India.
From a geographical perspective, the company derives 73% of its revenue from India, 15% from Australia, and 12% from Europe. Notably, it commands a 30% market share in the mattresses segment and an impressive 40% market share in Australia.
Despite facing challenges, the company experienced a notable annual revenue surge of 15%, escalating from ₹761 crore in Q3FY23 to ₹879 crore in Q3FY24. However, its net profit declined by 49%, decreasing from ₹61 crore to ₹31 crore during the same period.
Written by Omkar Chitnis
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