Stock Analysis

Is ITD Cementation India Limited (NSE:ITDCEM) Overpaying Its CEO?

Adun Saraban became the CEO of ITD Cementation India Limited (NSE:ITDCEM) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for ITD Cementation India

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How Does Adun Saraban's Compensation Compare With Similar Sized Companies?

Our data indicates that ITD Cementation India Limited is worth ₹20.1b, and total annual CEO compensation is ₹13m. Notably, that's an increase of 52% over the year before. When we examined a selection of companies with market caps ranging from ₹7.3b to ₹29.4b, we found the median CEO compensation was ₹17m.

So Adun Saraban receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at ITD Cementation India has changed over time.

NSEI:ITDCEM CEO Compensation October 22nd 18
NSEI:ITDCEM CEO Compensation October 22nd 18

Is ITD Cementation India Limited Growing?

On average over the last three years, ITD Cementation India Limited has grown earnings per share (EPS) by 72% each year. It achieved revenue growth of 2.6% over the last year.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has ITD Cementation India Limited Been A Good Investment?

ITD Cementation India Limited has not done too badly by shareholders, with a total return of 6.0%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Adun Saraban is paid around what is normal the leaders of comparable size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling ITD Cementation India Limited shares (free trial).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.

About NSEI:CEMPRO

Cemindia Projects

Provides construction and civil engineering contracting services in India.

Flawless balance sheet with high growth potential.

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