In This Article:
The CEO of Vadilal Industries Limited (NSE:VADILALIND) is Rajesh Gandhi. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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.
Check out our latest analysis for Vadilal Industries
How Does Rajesh Gandhi’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Vadilal Industries Limited has a market cap of ₹4.2b, and is paying total annual CEO compensation of ₹12m. (This is based on the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹4.5m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.
It would therefore appear that Vadilal Industries Limited pays Rajesh Gandhi 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Vadilal Industries has changed from year to year.
Is Vadilal Industries Limited Growing?
Over the last three years Vadilal Industries Limited has grown its earnings per share (EPS) by an average of 36% per year (using a line of best fit). It achieved revenue growth of 12% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Vadilal Industries Limited Been A Good Investment?
Given the total loss of 9.5% over three years, many shareholders in Vadilal Industries Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We examined the amount Vadilal Industries Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.