Advertisement
- India
- /
- Auto Components
- /
- NSEI:SINTERCOM
How Much Does Sintercom India's (NSE:SINTERCOM) CEO Make?
Jignesh Raval is the CEO of Sintercom India Limited (NSE:SINTERCOM), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Sintercom India pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Sintercom India
Comparing Sintercom India Limited's CEO Compensation With the industry
According to our data, Sintercom India Limited has a market capitalization of ₹2.2b, and paid its CEO total annual compensation worth ₹14m over the year to March 2020. Notably, that's a decrease of 22% over the year before. We note that the salary portion, which stands at ₹11.4m constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹10m. Accordingly, our analysis reveals that Sintercom India Limited pays Jignesh Raval north of the industry median. Moreover, Jignesh Raval also holds ₹115m worth of Sintercom India stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | ₹11m | ₹15m | 80% |
| Other | ₹2.9m | ₹2.9m | 20% |
| Total Compensation | ₹14m | ₹18m | 100% |
Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. Sintercom India is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Sintercom India Limited's Growth
Sintercom India Limited has reduced its earnings per share by 114% a year over the last three years. Its revenue is down 37% over the previous year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Sintercom India Limited Been A Good Investment?
Sintercom India Limited has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
As we touched on above, Sintercom India Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This doesn't look great when you realize that the company has been suffering from negative EPS growth for the last three years. And shareholder returns are decent but not great. So we think more research is needed, but we don't think the CEO is underpaid.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Sintercom India (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
If you decide to trade Sintercom India, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
About NSEI:SINTERCOM
Sintercom India
Engages in the manufacture and sale of sintered metal components and auto components for engines, powertrain, and exhaust systems in India.
Solid track record with imperfect balance sheet.
Market Insights
Advertisement
Weekly Picks
LO
Lou_Basenese on Optimi Health ·
The Only Psychedelic Company Already Selling MDMA and Psilocybin to Real Patients, Yet Priced Like It Doesn’t Exist
Fair Value:US$1157.5% undervalued
37 followersusers have followed this narrative
2 commentsusers have commented on this narrative
6 likesusers have liked this narrative
WE
WealthAP on Novo Nordisk ·
Novo Nordisk (NVO): Is the "Easy Growth" Story Over?
Fair Value:DKK 407.7721.4% undervalued
59 followersusers have followed this narrative
0 commentsusers have commented on this narrative
7 likesusers have liked this narrative
VA
ValueInvestingSubstack on Zoetis ·
Zoetis down -50% over the past year
Fair Value:US$92.9218.9% undervalued
21 followersusers have followed this narrative
0 commentsusers have commented on this narrative
8 likesusers have liked this narrative
CE
CentryResearch on Centrus Energy ·
Centrus Energy: The Next Nuclear Bottleneck Isn't Reactors. It's Fuel.
Fair Value:US$19013.7% undervalued
19 followersusers have followed this narrative
0 commentsusers have commented on this narrative
9 likesusers have liked this narrative
Recently Updated Narratives
AE
Aequitas on ASML Holding ·
ASML Will Reign as the Kingpin of the Semiconductor Supply Chain
Fair Value:€1.87k16.5% undervalued
1 followerusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
AE
Aequitas on Fortinet ·
Fortinet, compounding Cyber Security Player.
Fair Value:US$116.8430.4% overvalued
2 followersusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
AE
Aequitas on Constellation Software ·
Constellation Software: A Proven Serial Acquirer at a Discount
Fair Value:CA$3.72k28.3% undervalued
1 followerusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
Popular Narratives
BE
benjamin_lvieq on PayPal Holdings ·
PayPal: PayPal Doesn't Need to Grow – It Needs to Stop Falling – A Mispriced Cash Machine With a Cannibal Buyback
Fair Value:US$6513.6% undervalued
70 followersusers have followed this narrative
2 commentsusers have commented on this narrative
11 likesusers have liked this narrative
CU
CubanEros on Microsoft ·
A wonderful business at reasonable price.
Fair Value:US$419.919.1% undervalued
71 followersusers have followed this narrative
0 commentsusers have commented on this narrative
5 likesusers have liked this narrative
TR
tripledub on Alphabet ·
Warren Buffett Just Bet $10 Billion on Google. The Catch? You May Already Be Too Late.
Fair Value:US$23039.0% overvalued
93 followersusers have followed this narrative
1 commentusers have commented on this narrative
18 likesusers have liked this narrative
Trending Discussion
DE
derek_3wsdg on Teladoc Health ·
You’ve overlooked the activist investor factor. Travis Cocke’s Voss has announced 5% ownership through a 13G filing. They’ve added to that 5% since, and in doing so, have created a structural trap door for 27.42 Million Shares actively sold short. Chuck will announce lots of positives on July 29 but it’s what Voss announces shortly after that will rock the overextended Teledoc shorts. The Walmart partnership is the tip of the iceberg. The market is missing the sheer regulatory and enterprise friction of modern corporate healthcare. Teladoc isn't a "consumer app"; it is the primary digital infrastructure integrated directly into the legacy backends of Tier-1 insurance companies and fortune 500 employers, covering 105 million+ lives. Teladoc is acting as the digital top-of-funnel engine for the world's largest retailer. If Voss pushes the narrative that Teladoc is effectively the outsourced digital brain of Walmart's entire healthcare footprint, the fair value shifts from a basic health multiple to an enterprise distribution premium. Additionally , we are in a structural gold rush for high-quality, legally compliant, longitudinal medical data to train vertical healthcare AI models. Large technology hyperscalers and pharmaceutical giants cannot simply scrape the internet for this; they need structured clinical inputs. Teladoc sits on one of the largest de-identified virtual medical datasets on earth. From the activist playbook , we’ll see Voss demand the immediate creation of a Data & Diagnostics Licensing Division, transforming a legacy liability into an incredibly high-margin, pure-software data asset that requires zero human clinician hours to scale. Chuck is doing great work and deserves credi5 for the Teledoc turnaround but it will be Travis Cocke who will be responsible for a share price way beyond your $15 valuation.
0
|0