Stock Analysis

Here's Why Shareholders May Want To Be Cautious With Increasing Jamna Auto Industries Limited's (NSE:JAMNAAUTO) CEO Pay Packet

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Key Insights

  • Jamna Auto Industries to hold its Annual General Meeting on 25th of September
  • CEO Pradeep Jauhar's total compensation includes salary of ₹22.1m
  • The total compensation is 76% higher than the average for the industry
  • Jamna Auto Industries' EPS grew by 4.2% over the past three years while total shareholder loss over the past three years was 2.8%

In the past three years, shareholders of Jamna Auto Industries Limited (NSE:JAMNAAUTO) have seen a loss on their investment. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 25th of September could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Jamna Auto Industries

How Does Total Compensation For Pradeep Jauhar Compare With Other Companies In The Industry?

According to our data, Jamna Auto Industries Limited has a market capitalization of ₹43b, and paid its CEO total annual compensation worth ₹36m over the year to March 2025. That's mostly flat as compared to the prior year's compensation. In particular, the salary of ₹22.1m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Machinery industry with market capitalizations ranging from ₹18b to ₹70b, the reported median CEO total compensation was ₹20m. This suggests that Pradeep Jauhar is paid more than the median for the industry. Furthermore, Pradeep Jauhar directly owns ₹2.8b worth of shares in the company, implying that they are deeply invested in the company's success.

Component20252024Proportion (2025)
Salary₹22m₹20m62%
Other₹14m₹17m38%
Total Compensation₹36m ₹37m100%

Speaking on an industry level, nearly 97% of total compensation represents salary, while the remainder of 3% is other remuneration. In Jamna Auto Industries' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
NSEI:JAMNAAUTO CEO Compensation September 19th 2025

A Look at Jamna Auto Industries Limited's Growth Numbers

Over the past three years, Jamna Auto Industries Limited has seen its earnings per share (EPS) grow by 4.2% per year. Its revenue is down 5.1% over the previous year.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Jamna Auto Industries Limited Been A Good Investment?

Since shareholders would have lost about 2.8% over three years, some Jamna Auto Industries Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Jamna Auto Industries that investors should think about before committing capital to this stock.

Important note: Jamna Auto Industries 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.

About NSEI:JAMNAAUTO

Jamna Auto Industries

Engages in the manufacture and sale of tapered leaf, parabolic springs, and lift axles under the JAI brand in India and internationally.

Undervalued with excellent balance sheet and pays a dividend.

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