Operating Margin

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Price: 518.25 INR -4.43% Market Closed

Market Cap: ₹8.7T

2.6%

Declining

by 2.6%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

2.6%

Operating Income

₹925m

Revenue

₹35.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

2.6%

Operating Income

₹925m

Revenue

₹35.1B

Peer Comparison

Country		Company	Market Cap	Operating Margin
IN		Sheela Foam Ltd NSE:SFL	56.3B INR	Loading...
US		Tempur Sealy International Inc NYSE:TPX	14.3B USD	Loading...
US		Mohawk Industries Inc NYSE:MHK	7.5B USD	Loading...
CN		Oppein Home Group Inc SSE:603833	35.3B CNY	Loading...
CN		Jason Furniture Hangzhou Co Ltd SSE:603816	28.2B CNY	Loading...
TW		Nien Made Enterprise Co Ltd TWSE:8464	123.2B TWD	Loading...
CN	H	HHC Changzhou Corp SZSE:301061	19.6B CNY	Loading...
HK		Man Wah Holdings Ltd HKEX:1999	18.1B HKD	Loading...
CN		Suofeiya Home Collection Co Ltd SZSE:002572	13.8B CNY	Loading...
CN		A-Zenith Home Furnishings Co Ltd SSE:603389	12.7B CNY	Loading...
CH		Forbo Holding AG SIX:FORN	1.4B CHF	Loading...

Market Distribution

Min	-153 833.3%
30th Percentile	2.7%
Median	7.3%
70th Percentile	13.2%
Max	9 977%

Other Profitability Ratios

Sheela Foam Ltd
Glance View

Market Cap

8.7T INR

Industry

Consumer products

Sheela Foam Ltd., a luminary in the Indian mattress and foam industry, has carved a niche for itself through innovative business strategies and a keen understanding of consumer needs. Founded in 1971, the company has grown from a modest family business into a powerhouse in the polyurethane foam sector. At the heart of its operations lies a robust manufacturing framework, producing a wide array of foam-based products ranging from mattresses to pillows, cushioning essentials for furniture and specialized foams for industrial use. The flagship brand, Sleepwell, has become synonymous with comfort and quality, making it a household name in India. This success is underpinned by a meticulously structured supply chain and retail network that ensures product availability across urban and rural landscapes, allowing Sheela Foam to capitalize on the ever-expanding middle-class market. Moreover, Sheela Foam's business model emphasizes value innovation, leveraging technology and R&D to deliver cutting-edge products like orthopedically beneficial mattresses and environmentally friendly foams. The company understands that its profitability is intertwined with its ability to adapt and innovate, keeping in step with consumer preferences and economic trends. Its strategy encompasses both direct sales and a widespread dealer network, enabling efficient market penetration. While maintaining a strong domestic footprint, Sheela Foam has also extended its reach internationally, with operations in Australia under the brand Joyce Foam, thus broadening its revenue stream. This dual strategy of national dominance coupled with international foray exemplifies how Sheela Foam Ltd. balances scalability with sustainability, ensuring its position as a resilient leader in the industry.

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Sheela Foam Ltd
BSE:540203

Peer Comparison

Market Distribution

Other Profitability Ratios

Sheela Foam Ltd
Glance View

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Sheela Foam Ltd BSE:540203