Shareholders May Not Be So Generous With Manugraph India Limited's (NSE:MANUGRAPH) CEO Compensation And Here's Why

Key Insights

• Manugraph India will host its Annual General Meeting on 24th of September
• Total pay for CEO Sanjay Shah includes ₹11.9m salary
• Total compensation is 115% above industry average
• Over the past three years, Manugraph India's EPS fell by 23% and over the past three years, the total shareholder return was 49%

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The share price of Manugraph India Limited (NSE:MANUGRAPH) has increased significantly over the past few years. However, the earnings growth has not kept up with the share price momentum, suggesting that some other factors may be driving the price direction. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 24th of September. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out our latest analysis for Manugraph India

How Does Total Compensation For Sanjay Shah Compare With Other Companies In The Industry?

Our data indicates that Manugraph India Limited has a market capitalization of ₹705m, and total annual CEO compensation was reported as ₹12m for the year to March 2025. That is, the compensation was roughly the same as last year. Notably, the salary of ₹12m is the entirety of the CEO compensation.

In comparison with other companies in the Indian Machinery industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹5.5m. Hence, we can conclude that Sanjay Shah is remunerated higher than the industry median. Moreover, Sanjay Shah also holds ₹137m worth of Manugraph India stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 97% of total compensation represents salary and 3% is other remuneration. On a company level, Manugraph India prefers to reward its CEO through a salary, opting not to pay Sanjay Shah through non-salary benefits. 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.

A Look at Manugraph India Limited's Growth Numbers

Over the last three years, Manugraph India Limited has shrunk its earnings per share by 23% per year. Its revenue is up 14% over the last year.

Few shareholders would be pleased to read that EPS have declined. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Manugraph India Limited Been A Good Investment?

We think that the total shareholder return of 49%, over three years, would leave most Manugraph India 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.

To Conclude...

Manugraph India rewards its CEO solely through a salary, ignoring non-salary benefits completely. Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Manugraph India that investors should be aware of in a dynamic business environment.

Important note: Manugraph India 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.