Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Janumahanti Rao is the CEO of Mold-Tek Technologies Limited (NSE:MOLDTEK). 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. 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.
How Does Janumahanti Rao's Compensation Compare With Similar Sized Companies?
Our data indicates that Mold-Tek Technologies Limited is worth ₹1.5b, and total annual CEO compensation is ₹5.5m. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹2.4m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.4m.
Thus we can conclude that Janumahanti Rao receives more in total compensation than the median of a group of companies in the same market, and of similar size to Mold-Tek Technologies 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.
The graphic below shows how CEO compensation at Mold-Tek Technologies has changed from year to year.
Is Mold-Tek Technologies Limited Growing?
On average over the last three years, Mold-Tek Technologies Limited has grown earnings per share (EPS) by 21% each year (using a line of best fit). It achieved revenue growth of 21% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Mold-Tek Technologies Limited Been A Good Investment?
With a three year total loss of 8.1%, Mold-Tek Technologies Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at Mold-Tek Technologies Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if Mold-Tek Technologies insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.