We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Pritika Auto Industries Limited's (NSE:PRITIKAUTO) CEO For Now
Key Insights
- Pritika Auto Industries' Annual General Meeting to take place on 20th of September
- Total pay for CEO Harpreet Nibber includes ₹12.3m salary
- Total compensation is 545% above industry average
- Pritika Auto Industries' EPS declined by 12% over the past three years while total shareholder return over the past three years was 2.4%
The anaemic share price growth at Pritika Auto Industries Limited (NSE:PRITIKAUTO) over the past few years has probably not impressed shareholders and may be due to earnings not growing over that period. Some of these issues will occupy shareholders' minds as the AGM rolls around on 20th of September. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.
View our latest analysis for Pritika Auto Industries
How Does Total Compensation For Harpreet Nibber Compare With Other Companies In The Industry?
Our data indicates that Pritika Auto Industries Limited has a market capitalization of ₹3.0b, and total annual CEO compensation was reported as ₹12m for the year to March 2025. This was the same as last year. Notably, the salary of ₹12m is the entirety of the CEO compensation.
For comparison, other companies in the India Trade Distributors industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹1.9m. Hence, we can conclude that Harpreet Nibber is remunerated higher than the industry median. What's more, Harpreet Nibber holds ₹1.3b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹12m | ₹12m | 100% |
| Other | - | - | - |
| Total Compensation | ₹12m | ₹12m | 100% |
Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. On a company level, Pritika Auto Industries prefers to reward its CEO through a salary, opting not to pay Harpreet Nibber 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.
Pritika Auto Industries Limited's Growth
Over the last three years, Pritika Auto Industries Limited has shrunk its earnings per share by 12% per year. In the last year, its revenue is up 14%.
Overall this is not a very positive result for shareholders. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. 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 Pritika Auto Industries Limited Been A Good Investment?
With a total shareholder return of 2.4% over three years, Pritika Auto Industries Limited has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
In Summary...
Pritika Auto Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. While it's true that the share price growth hasn't been bad, it's hard to overlook the lack of earnings growth and this makes us question whether there will be any strong catalyst for the stock to improve. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Pritika Auto Industries (1 is concerning!) that you should be aware of before investing here.
Switching gears from Pritika Auto Industries, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.