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. Like this story, share it with millions of investors on M3 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.At Centuary, we believe that anyone who spends their days working hard, and achieving their dreams, need – and deserve – the best sleep each night.
That’s why our mattresses are specially designed to perfectly match your lifestyle and sleep style. After all, as India’s Sleep Specialist, we believe our job, is to make sure you’re able to take on yours! And rediscover the power of sleep! Our Specially Designed Mattresses Centuary mattresses is one of India’s leading mattress brands. The company’s range of specially designed mattresses include Spring Mattress, Foam Mattress, Coir Mattress and also pillows, cushions and comfort accessories. Sizes available are standard single bed mattress, double bed mattress, King size, Queen size and also customized mattress sizes are available easily and quickly.Here are the top mattress brands in IndiaDuroflexFibroflexKurl-onSpringfitCoirfitConfused about which mattress to buy?Here are the things to be considered before you make a decisionSupportSleeping Position/ Body TypesWarranty1. SUPPORTAim for a supportive mattress not a hard one!Always start with the level of support a mattress provides.
Nowadays all mattresses are made up of many layers but there is an inner core that defines what kind of mattress it actually is. Find out which kind of inner core suits you and provides the best support.If you like a bed with bounce…Spring mattresses have that nice bouncy feel.If you prefer an extra-firm base…You can go for memory foam mattresses, (which have a polyurethane core) and have much less spring.If you like a little buoyancy…Latex mattresses are similar to memory foam models in terms of firmness, but have a bit more spring-back.Interested to get one for your needs? Buy Mattress in Online from Kartabed - A leading Mattress Store for any kind of Mattresses, pillows, cushion and bed linen.2. SLEEPING POSITION/ BODY TYPESThe next point to consider when making your choice, is your sleeping position and the body types of your partner and yourself.3. WARRANTYMake sure you read the warranty conditions thoroughly and safeguard against violating any of them as this may render the warranty void.
Generally, a warranty covers manufacturing defects which will likely reveal itself within a year.plete Mattress Buying Guide - http://amzn.to/2i0xpZsWake-Fit Orthopaedic Memory Foam Mattress(78*72*6inch)Available at - http://amzn.to/2hTkzNfMattress Feel : Medium Soft.Warranty : 5 Years Manufacturer warranty.Direct from FactoryCover : Premium quality quilted cotton fabricMaterial Type : High Density Foam, Memory Foam.Wakefit's Memory Foam mattress made from high quality memory foam with the latest technological innovations provide excellent back support while engulfing you in its cocoon and letting you enjoy restful, deep sleep.Kurl-on Relish 6-inch King Size Spring Mattress (78x72x6)Available at - http://amzn.to/2hUOuXSProduct Dimensions: Length (78 inches), Width (72 inches), Height (6 inches)Primary Material: Spring, Upholstery Material: PolycottonColor: Multicolour, Style: FineBed Size: KingNo Assembly Required: The product is delivered in a pre-assembled stateWarranty: 5 Years on productIt's a pocket spring mattress, people with variable weight can be comfortably sleep together on a single mattressSince
, I am a regular customer of Springwel mattresses and have a perfect experience with its quality and comfort, I would suggest you to go for Springwel, India’s leading and best brand in mattresses and other sleeping accessories supplier such as duvets, bed sheets.Sleep is the most important aspect of every living creature’s life. We spent one-third of our lives sleeping. Therefore, A good mattress is very essential for a good night's sleep and the energy you have throughout the next day.Springwel has a wide range of Spring, Latex and Coir mattresses, suitable for everyone as per your preferences. The mattresses are designed to relieve pressure points, which ultimately results in the elimination of body aches and helps you to achieve comfortable sleep ever. Also, these mattresses are Durable and are available at a very reasonable price.Here is the comparison between Kurlon and Springwell for Spring MattressTypes of Kurlon Mattress in Spring Mattress SectionTypes of Spring Mattress in Spring well MattressBut if you are suffering from back pain, better go for memory foam mattress.
I have recently got a memory foam mattress by comfymat mattress and its really good for people with back pain. It is one of the best mattress for back pain.There are a number of mattress brands in India .In the mass market segment are the Sleepwell, Kurlon , Springwel,Springfit , Peps etc. In the affordable luxury segment there are brands like Snoozer, Simmons, Serta, Sealy & the really top notch Rs.3 Lac + mattresses imported from sweden with horse hair sold through fancy showrooms .Choosing a mattress is needlessly confusing. At Snoozer , we keep it simple by offering you four level of mattresses you will need from. Choose your comfort preference first .. it helps you sleep faster . If you love the firm feel of a coir mattress – choose the Ortho Firm model . If you like the feel of good latex mattress then choose the Beauty Sleep Model . If you love the softness of visco elastic memory foam – choose the Presidential Suite model , and if you love the regular foam mattress – choose the Posture Care model .