Sheela Foam Q4 Review - Another Weak Print (And Underlying): ICICI Securities

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Sheela Foam Ltd. reported a disappointing Q4 FY22 revenue performance (up 4% YoY) was further exacerbated by continued weak gross margin print of 37.4% (lower by ~12% from pre-Covid levels). India branded volumes declined 6% YoY but were up 4% on a three-year compound annual growth rate basis. While raw material inflation does not appear to be an incremental worry, the disappointment in Ebitda margin was led by higher opex. Growth in business-to-business business was relatively better. Australia business reported an uptick (up 4% YoY) while Spain business continued to be weak (down 6% YoY). Our positive stance on Sheela Foam is based on the long-term opportunities which also embellish the narrative -benefit from China plus strategy of buyers in the U.S., Europe,opportunity in furniture cushioning and manufacturing (under SleepX brand),sustained acceleration in India business growth (competitive edge through 5,000 plus exclusive brand outlet network),consumers realising importance of good quality mattress andfocus on growing e-commerce channel..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sheela Foam Q4 Review - Another Weak Print (And Underlying): ICICI Securities

Sheela Foam Q4 Review - Another Weak Print (And Underlying): ICICI Securities

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