IPO - Issues Open Nov 30, 2016, 08.26 AM | Recommending it to subscribe with caution, Choice India agrees that there is a bleak prospect of the issue to enjoy listing gains. It says the issue is favourable for investors with long term horizon. Sleepwell maker Sheela Foam IPO: Should you subscribe? As initial public open offer of India's first mattress company, Sheela Foam, opens Tuesday, analysts seem to be a bit cautious about it. The issue of Sleepwell mattress maker which will close on December 1 is planning to raise Rs 510 crore. The issue is priced at Rs 680-730 per share. The company is issuing 0.7-0.75 crore shares worth Rs 510 crore via offer for sale post which promoter stake is likely to be in range of 84.6-85.7 percent. So, is its valuation too expensive to subscribe? Angel Broking says that on its FY17’s net profit of Rs 121 crore, the issue on its upper band is 27 times of its price to earnings (PE) ratio which is at par with consumer durable peers which have strong brand and higher B2C sales.
However, it recommends subscribing the issue for medium to long term perspective but does not think the IPO will give any listing gains considering current market conditions. What the brokerage firm likes about the company is its net cash positive balance sheet, easing working capital cycle from over 40 days in FY12 to current 26 day, improving return ratios with better product mix and promoters experience.It says the issue is favourable for investors with long term horizon. "At higher price band of Rs 730, its share is valued at a P/E multiple of 34 times its FY16 earnings. Moreover, on P/BVPS and EV/EBITDA front, the company is available at 10.5 times and 19.6 times," it says in a note. It also adds that the mattress maker’s business may be impacted due to demonetisation as its 60 percent revenue is in cash. , the issue at price band of Rs 680-730, the stock is available at a multiple of 25.1-27 times annualised FY17 earnings per share (EPS). Hem Securities also suggests subscribing only for investors with high risk appetite and long term perspective, although its fundamentals look strong.
“At price band of Rs 680-730, PE multiple will turn out to be 25-27 on post issue annualized H1FY17 EPS of Rs 27.03 per share of company,” it says. Centrum Wealth feels investors comfortable with high valuation and such business model may look at the issue. It, however, adds that price performance of the stock post listing would also depend on the growth the company is able to achieve. "At the higher end of the price band of Rs 730, the stock is valued at 19.1x EV/EBITDA and 34.0x P/E on FY16 basis which looks fully priced," the brokerage firm says.Religare believes that good prospects, healthy and improving return ratios and low leverage (debt-equity has declined consistently from 1.8x in FY12 to 0.2x in H1FY17) should provide valuation comfort in the long term. According to the brokerage firm, at the upper end of the price band of Rs 730, the company is available at 34x PE at FY16 earnings. SPA Research recommends subscribing to the issue with long term perspective.
It is positive on the company due to its dominant market share and the mattress manufacturer is in a sweet spot due to shift to organised sector driven by GST implementation, rising urbanization, increase in disposable income, increase in health related issues of the Indian population and increasing awareness about sleep products. The brokerage firm also feels that driven by revenue CAGR of 8 percent and improving operating margin due to stable raw material prices and benefit of operating leverage it expects Sheela Foam’s earning to grow at a CAGR of 15-20 percent overFY16-19. “At the upper end of the price band, the stock will trade at PE multiple of 27x its FY17 which is reasonable compared to many consumer stocks which are trading at valuation of over 30 times trailing twelve months (TTM) earnings and given SFL’s leadership position and scope for improvement in return ratios driven by higher operating leverage," it says. Incorporated in 1971, Sheela Foam (SFL) manufactures foam-based home comfort products targeted primarily at Indian retail consumers, as well as technical grades of polyurethane foam (PU Foam) for end use in a wide range of industries.
Some of the brands under which it sells PU foam cores include Splash, Mystiq, Rainbow, Flexituf, Champion and Indigo, which vary in terms of thickness, density and grade. It has a pan India distribution network that consists of over 100 exclusive distributors, over 2,000 exclusive retail dealers and over 2,500 multi-brand outlets, as on September 30, 2016. In fiscal years 2015, 2016 and the six months ended September 30, 2016, its net revenues from the sale of home comfort products aggregated to Rs 916 crore, Rs 1016.49 crore and Rs 513.2 crore, constituting 64.61 percent, 65.58 percent and 64.5 percent respectively, of its total audited consolidated operating revenues for such periods.The company reported topline/bottomline CAGR of 10.4 percent/91.3 percent in FY12-16 to Rs 1550 crore/Rs 104.8 crore respectively.Think you’re sleeping smart? See which of the following statements about slumber are true–and which we’ve dreamed up.iiWhat’s the Surefire Way to Kill Bed Bugs and the Eggs in Seconds?
last updated: Feb 17, 2017You know how annoying back pain can be. It hurts and it affects every waking moment.So finding a mattress to address your back pain is a life-changer.Since pro athletes use our mattresses for rest and recovery, people are always asking us which Essentia mattress would help their back pain.You may be asking yourself, is changing my mattress the best place to start?"The answer is YES, 8 hours per night will make or break your back!You'll want to look for a mattress with the follow 3 Attributes.1) proper support2) spinal alignment3) pressure point relief.That's what addresses persistent upper and lower back pain as well as shoulder and neck pain. LatexMemory FoamNatural Memory Foam Made using certified organic & natural components, no metals. Reduced VOC exposure, not exposed to harmful chemicals. Heat dissipates through the mattress and away from the body. Eliminates negative space, ideal for proper spinal alignment. Eliminates numbness and soreness.
Evenly distributed body weight allows for increased blood circuThe truth is, all Essentia mattresses are pretty amazing but some outperform others in terms of back support and back pain relief.In fact, the Dormeuse and Beausommet are tied for first since they offer similar performance but address 2 difference body types. If you have a pronounced lower back arch you'll need the Dormeuse. Little to no arch and you're looking at the Beausommet. If you suffer from:- Upper or Lower Back Pain - Shoulder or Neck Pain - Cervical Spondylosis, or Arthritis of the Neck - Pinched Nerve - Muscle Strain - Spinal Stenosis - Spondylolisthesis - Cervical Kyphosis - Scoliosis - Kyphosis - Whiplash InjuryOur top-of-the-line Dormeuse (softer) & Beausommet (firmer) mattress could help you get a better night's sleep. People who suffer from back injuries related to car accidents have called to thank us for these mattresses. Neck pain alone can often be resolved with one of 3 Essentia support pillows.
Top 5 Tips to Choosing a Back Pain Mattress1) Is a Firm Mattress really better for your back?You might be confusing firmness with support; recent studies show that maximum support and back pain relief are provided by a medium-firm mattress.According to a recent survey, 95% of orthopedic surgeons said they believed a mattress plays a role in lower back pain management. 31 million Americans have suffered from acute or chronic back pain.2) Again, Avoid Firm Mattresses!!!For all you stubborn folks, according to this study published in the British medical journal, The Lancet, researchers found that patients suffering from back pain were twice as likely to report improvement when sleeping on a medium-firm mattress as opposed to those patients who slept on a firm mattress.The trial involved 313 adults with chronic lower back pain and backache. As a part of the study, the subjects were randomly assigned to two groups. The first group slept on a medium-firm mattress instead of their normal mattress and the second group on a firm mattress.
When compared to the patients who slept on a firm mattress, patients who slept on the medium-firm mattresses reported reduced incidents of back pain in bed, reduced back pain upon rising from their bed, and reduced back pain related to disability. The study results indicated that a medium-firm mattress provides a better balance between back support and comfort for lower back pain than a firm mattress.Contrary to popular belief, sleeping on a mattress that is too firm exerts additional pressure on the back, resulting in more back pain for some patients. So the best mattress for a bad back is a medium-firm.3) Price Doesn't Equate to QualityWhen you're buying a car you can often relate the price tag with the quality of the product. That's not really the case when it comes to mattresses.Finding a mattress that will help your back pain doesn't have to be an expensive proposition. Going with a natural latex mattress or memory foam mattress is a great start. Avoid spring mattress because this is typically where you'll get swindled.4) Body Type MattersTop heavy or bottom heavy, 5 feet tall or 6’5, many factors need to be taken into consideration.