Sheela Foam rises nearly 4% as Axis Securities initiates buy with potential upside of 22%

Share price of Sheela Foam ended 4 percent higher on Wednesday as research house Axis Securities initiated buy on the stock with a potential upside of 22 percent.

Research house has kept a target price of Rs 2,039 per share.

According to firm, company's strong brand awareness among consumers to give competitive edge over peers. Product expansion, introduction of low price products and high margin products are some of the positives.

New plant setup and investment in existing plants are going to be supported by strong cash flow position, it added.

Research house expected a fall in price of major raw material TDI to further increase margin.