Sheela Foam (Sleepwell, Kurlon, Furlenco) is the company that literally makes money while you sleep—except, judging by its profits, it might be sleepwalking itself. Market leader in PU foam and mattresses with a 30% share in India, 40% in Australia, but with a P/E of 131x and ROE of 2%, this is basically the Reliance of mattresses but the Yes Bank of returns.
2. Introduction
Sheela Foam has been around since 1971, proving that Indians love two things: chai and arguing about mattress firmness. From humble foam blocks to a ₹7,500 Cr listed entity, Sheela Foam has grown into India’s largest PU foam producer.
The company flexes a portfolio that ranges from Sleepwell mattresses (your dad bought one in 1995 and it’s still alive) to Kurlon (acquired for ₹2,035 Cr), to a stake in Furlenco (the Urban Clap of furniture). If you can sit on it, sleep on it, or accidentally spill chai on it—Sheela Foam probably makes it.
But here’s the punchline: Despite being the mattress king, its profits are as thin as hostel bedsheets. FY25 PAT was only ₹57 Cr on ₹3,451 Cr revenue, translating to a margin of 1.7%. Basically, they sell comfort but their financials are anything but comfortable.
Question for readers: Would you pay 131x earnings for a business whose core competence is foam?
3. Business Model – WTF Do They Even Do?
Lazy investor version:
Mattresses (49% revenue) – Spring, Tech, Custom Cell, Back Support… basically, different names for “please sleep properly.”
Technical Foam (20%) – Automotive, UV-resistant, and reticulated foams. Think car seats, AC filters, fancy packaging.
Furniture Foam (8%) – Cool Gel, Primo. Aka, “the part of your sofa you never think about.”
Others (23%) – Bedsheets, pillows, and accessories for the same crowd who buys iPhone covers for ₹4,000.
Exports (24%) – Spain and Australia. Yes, Aussies bounce on Kurlon too.
So the business is simple: slice foam into mattresses, market it like NASA-grade sleep science, and pray margins don’t collapse faster than your bean bag.
4. Financials Overview
Metric
Latest Qtr (Jun 25)
YoY (Jun 24)
QoQ (Mar 25)
YoY %
QoQ %
Revenue
821 Cr
810 Cr
850 Cr
1.4%
-3.4%
EBITDA
75 Cr
60 Cr
33 Cr
25.0%
128%
PAT
7.4 Cr
46.6 Cr
22.2 Cr
-84.1%
-66.6%
EPS (₹)
0.68
4.23
1.98
-84.0%
-65.7%
Annualised EPS = ₹0.68 × 4 = ₹2.72 CMP ₹692 → P/E = 254x (Screener’s 131x is being generous).
Commentary: If this was a mattress, it’s the kind that sinks in the middle and breaks your back in six months.
5. Valuation – Fair Value Range Only
P/E Method: Industry median P/E ~32x. EPS = ₹2.72 → Fair Value = ₹87.
EV/EBITDA: EV = ₹8,943 Cr, EBITDA FY25 = ₹266 Cr → EV/EBITDA = 33.6x. Peers trade at ~15–20x. → Fair Value Range ~₹3,900–5,300 Cr → ₹360–490/share.
