Should You Worry About Hilton Metal Forging Limited’s (NSE:HILTON) CEO Salary Level?

In This Article:

Yuvraj Malhotra has been the CEO of Hilton Metal Forging Limited (NSE:HILTON) since 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Hilton Metal Forging

How Does Yuvraj Malhotra’s Compensation Compare With Similar Sized Companies?

According to our data, Hilton Metal Forging Limited has a market capitalization of ₹238m, and pays its CEO total annual compensation worth ₹6.0m. (This figure is for the year to March 2018). Notably, the salary of ₹6.0m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO compensation was ₹1.3m.

Thus we can conclude that Yuvraj Malhotra receives more in total compensation than the median of a group of companies in the same market, and of similar size to Hilton Metal Forging Limited. However, this doesn’t necessarily mean the pay 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, below, how CEO compensation at Hilton Metal Forging has changed over time.

NSEI:HILTON CEO Compensation, March 3rd 2019
NSEI:HILTON CEO Compensation, March 3rd 2019

Is Hilton Metal Forging Limited Growing?

Over the last three years Hilton Metal Forging Limited has grown its earnings per share (EPS) by an average of 109% per year (using a line of best fit). Its revenue is up 11% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Hilton Metal Forging Limited Been A Good Investment?

With a total shareholder return of 4.5% over three years, Hilton Metal Forging 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 Hilton Metal Forging 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.