NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Sheela Foam Ltd.'s consolidated revenue (organic) performance (-10% YoY) was dragged by a continued decline in its B2B businesses (led by price corrections).
Positively, branded mattress volumes are growing well with accelerated growth in Sleepwell (+31% YoY) and Kurl on (+17% YoY) driven by launches and TVC campaigns. Kurl-on, acquisition is tracking well with improved volume growth performance and profitability (operating margin doubled to 7%; further, cost synergies of ~200 basis points expected in FY25).
As expected, breakeven in Furlenco business since February 2024 has further reduced drag on profitability.
Continued reinvestment of gross margin benefits towards higher ad spends, to revive consumer demand for branded mattresses, is a positive. Maintain Buy.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.
