Is Advani Hotels & Resorts (India) Limited’s (NSE:ADVANIHOTR) CEO Pay Justified?

In This Article:

In 2008 Sunder Advani was appointed CEO of Advani Hotels & Resorts (India) Limited (NSE:ADVANIHOTR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Advani Hotels & Resorts (India)

How Does Sunder Advani’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Advani Hotels & Resorts (India) Limited has a market cap of ₹2.7b, and is paying total annual CEO compensation of ₹11m. That’s a notable increase of 15% on last year. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.5m.

Thus we can conclude that Sunder Advani receives more in total compensation than the median of a group of companies in the same market, and of similar size to Advani Hotels & Resorts (India) Limited. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Advani Hotels & Resorts (India) has changed over time.

NSEI:ADVANIHOTR CEO Compensation November 21st 18
NSEI:ADVANIHOTR CEO Compensation November 21st 18

Is Advani Hotels & Resorts (India) Limited Growing?

Advani Hotels & Resorts (India) Limited has increased its earnings per share (EPS) by an average of 19% a year, over the last three years In the last year, its revenue is up 14%.

This shows that the company has improved itself over the last few years. Good news for shareholders. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Advani Hotels & Resorts (India) Limited Been A Good Investment?

Advani Hotels & Resorts (India) Limited has served shareholders reasonably well, with a total return of 13% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

We compared total CEO remuneration at Advani Hotels & Resorts (India) Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.