In This Article:
Rajnikant Ajmera became the CEO of Ajmera Realty & Infra India Limited (NSE:AJMERA) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Ajmera Realty & Infra India
How Does Rajnikant Ajmera's Compensation Compare With Similar Sized Companies?
Our data indicates that Ajmera Realty & Infra India Limited is worth ₹4.8b, and total annual CEO compensation was reported as ₹14m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at ₹13m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹2.4m.
It would therefore appear that Ajmera Realty & Infra India Limited pays Rajnikant Ajmera more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Ajmera Realty & Infra India, below.
Is Ajmera Realty & Infra India Limited Growing?
On average over the last three years, Ajmera Realty & Infra India Limited has grown earnings per share (EPS) by 15% each year (using a line of best fit). Its revenue is up 37% over last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Ajmera Realty & Infra India Limited Been A Good Investment?
With a total shareholder return of 3.5% over three years, Ajmera Realty & Infra India Limited has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at Ajmera Realty & Infra India Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.