We have been pretty impressed with the performance at Coral India Finance and Housing Limited (NSE:CORALFINAC) recently and CEO Navin Doshi deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 30 August 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
How Does Total Compensation For Navin Doshi Compare With Other Companies In The Industry?
Our data indicates that Coral India Finance and Housing Limited has a market capitalization of ₹1.5b, and total annual CEO compensation was reported as ₹4.8m for the year to March 2021. We note that's a decrease of 11% compared to last year. Notably, the salary of ₹4.8m is the entirety of the CEO compensation.
In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹4.6m. This suggests that Coral India Finance and Housing remunerates its CEO largely in line with the industry average. Furthermore, Navin Doshi directly owns ₹704m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Speaking on a company level, Coral India Finance and Housing prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Coral India Finance and Housing Limited's Growth
Coral India Finance and Housing Limited's earnings per share (EPS) grew 12% per year over the last three years. In the last year, its revenue is up 74%.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 Coral India Finance and Housing Limited Been A Good Investment?
We think that the total shareholder return of 80%, over three years, would leave most Coral India Finance and Housing Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Coral India Finance and Housing pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 4 warning signs for Coral India Finance and Housing that investors should think about before committing capital to this stock.
Important note: Coral India Finance and Housing is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
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