Rohini Kalyani became the CEO of Kalyani Forge Limited (NSE:KALYANIFRG) in 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Kalyani Forge

How Does Rohini Kalyani’s Compensation Compare With Similar Sized Companies?

Our data indicates that Kalyani Forge Limited is worth ₹1.1b, and total annual CEO compensation is ₹5m. Notably, that’s an increase of 33% over the year before. We examined a group of similar sized companies, with market capitalizations of below ₹14.6b. The median CEO compensation in that group is ₹2m.

It would therefore appear that Kalyani Forge Limited pays Rohini Kalyani 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 better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Kalyani Forge has changed from year to year.

Is Kalyani Forge Limited Growing?

On average over the last three years, Kalyani Forge Limited has grown earnings per share (EPS) by 71% each year. Its revenue is up 18% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. 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 you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Kalyani Forge Limited Been A Good Investment?

Kalyani Forge Limited has generated a total shareholder return of 24% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

We compared the total CEO remuneration paid by Kalyani Forge Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling Kalyani Forge Limited shares (free trial).