ICICI Securities: Sheela Foam - Fast Recovery, Strong Long-Term Growth Tailwinds
A worker performs a quality control test on a mattress. (Photographer: David Paul Morris/Bloomberg)

ICICI Securities: Sheela Foam - Fast Recovery, Strong Long-Term Growth Tailwinds

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Sheela Foam Ltd.’s Q2 LFL revenue grew 6%, a significant beat. We like -

1.recovery in branded mattress (up 8%), furniture cushioning (up 10%) and foam cores (up 15%) in India,

2. Australia subsidiary grew 20%, the higher since IPO (likely driven by Indigenization, in our view),

3. long-term growth opportunities which are discounted cash flow accretive and importantly embellish the narrative as well -

a) grow exports from Spain (likely gaining from China plus strategy of buyers in U.S., Europe),

b) opportunity in furniture cushioning and manufacturing (under SleepX brand).

Click on the attachment to read the full report:

ICICI Securities Sheela Foam Q2FY21 Results Update.pdf

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