Keynote Capitals Initiates Buy On Midcap Consumer Durable Stock, Scrip Rallied 19.11 % In 1 Week

Broking firm Keynote Capitals initiated Buy on Sheela Foam Ltd. (SFL) with a target price of Rs. 1,311 apiece. It sees a robust upside of up to 9% if purchased at the current market price. The stock jumped 19.11% in the past 1 month.

Established in 1971, SFL is the largest manufacturer of Polyurethane Foams (PU) in Asia Pacific. With a strong foothold in India, the Company has secured a dominant position in key industries like mattresses (30-35%), automotive (70-75%), footwear, lingerie, and furniture by FY23. It is a midcap Consumer Durables company. It has a market capitalisation of Rs. 11,809.83 crore.

View & Valuation - Aiming at Multifaceted Growth

According to Keynote Capitals, The growth drivers include emerging Indian B2B opportunities, B2C and D2C product launches, expansion in the Australian furniture and mattress industry, and increased exports from Spain to the USA. To leverage the prospects, the Company laid capex worth Rs. 3.5 Bn, guided to be operational by H1 FY24. "We initiate coverage on Sheela Foam Ltd with a BUY rating and a target price of Rs. 1,311 (50x FY24 PE ratio on an estimated EPS of Rs.26), implying an upside of ~28%," the brokerage has said.

Stock Overview

The stock of SFL ended at Rs. 1,210.45 apiece, jumped 4.85% as compared to its previous close. It quoted its 52 week high at Rs. 1,711.50 apiece and 52 week low at Rs. 9.06.60 apiece, respectively.

The stock rallied 19.11% in 1 week. In 1 month, it jumped 15.79%. The stock declined 13.65% in 1 year. In 3 years, it gave 74% positive return. In 5 years, it gave 60.04% positive return.

Disclaimer - The article highlights Consumer Durable Stock. The stock has been picked from the brokerage report of Keynote Capitals. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.