Sham Foam Limited is a full-stack vertically integrated company primarily engaged in the manufacturing, distribution, marketing, and selling of Polyurethane (PU) Foam, mattresses, and other allied home comfort products targeted primarily at Indian consumers. The company also manufactures specialized industrial grades of PU Foam that find application in a wide range of Indian industries, including sports products, seat covers, shoes, innerwear, jackets, and related apparel. The company's underlying business model is built on vertical integration, enabling it to control every aspect of its operations from conceptualizing, designing, and engineering to manufacturing, distributing, and managing customer experience and engagement.
The company offers a highly diversified product portfolio designed to cater to consumers with varied preferences and requirements. Its home comfort product line includes mattresses, pillows, furniture cushions, and PU foam cores. The company’s mattresses are marketed under its proprietary brands, Featherfresh and Restivia, which comprise both pure foam mattresses and hybrid mattress models combining spring and rebounded foam. Additionally, its pillows and cushions are primarily offered under the Featherfresh range, utilizing PU Foam of different densities to ensure comfort and durability.
Sham Foam Limited caters to both residential and commercial clients, with residential sales historically driving the core consumer demand. On a geographic front, the company has concentrated its domestic sales primarily within North India, generating the major portion of its revenue from customers situated in Delhi, Haryana, Punjab, and Uttar Pradesh. In Fiscal 2026, Uttar Pradesh was the single largest state market, contributing Rs 2,523.75 lakhs (27.34% of domestic revenue from operations), followed by Punjab at Rs 1,950.54 lakhs (21.13%).
The company conducts its manufacturing operations through a state-of-the-art facility situated at Village Rajpura, Tehsil Shahzadpur, Ambala, Haryana, which spans an area of 2,04,460 square feet and is accredited with ISO 9001:2015 and BIS Certification (IS 7933:2022). The facility has an installed capacity of 15,000 tonnes per annum (TPA) for foam production in India. Operational efficiency is high, with the company running at a capacity utilization rate of around 80% of available capacity in recent years.
A critical operational highlight is the strategic location of the manufacturing facility, which is situated close to the majority of its customers' manufacturing facilities. This geographical proximity enables the company to optimize its deliveries, reduce lead times, and facilitate closer interaction with dealers and clients. While certain finished products like pillows are manufactured on a job-work basis through third-party manufacturers, the core PU foam used across all home comfort products is manufactured in-house to maintain strict quality standards.
Financial Performance & Valuation Analysis As per financial performance, Sham Foam Limited has posted total income / net profits of Rs 73.89 Cr / Rs 2.97 Cr (FY24), Rs 81.62 Cr / Rs 3.58 Cr (FY25) and Rs 92.39 Cr / Rs 8.65 Cr (FY26). So as per previous financials data, the company has shown consistent top-line growth with Revenue from Operations expanding at an 11.89% CAGR, while its total debt decreased significantly in FY26 as long-term borrowings were reduced to Rs 3.72 Cr from Rs 9.76 Cr in FY24. Company has an average EPS of Rs 7.19 (weighted average) and average RoNW of 34.37% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 5.16 as per NAV of Rs 25.21 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 2.42. If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue (~1.15 Cr shares), then the asking price is at a Post-Issue P/E of around 50.36, 41.70, and 17.27 respectively. As per RHP, a comparison between listed peers shows Sheela Foam Limited trading at a standalone P/E of 64.50 and Wakefit Innovations Limited trading at 21.22, indicating that the company is attractively priced relative to its peers at the upper price band.
BRLM & Track Record On BRLM's front, Corporate Makers Capital Limited and Navigant Corporate Advisors Limited are associated with this IPO, and Registrar Alankit Assignments Limited has handled multiple public issues in the last three fiscal years. (Data as on current date in document).
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