Nandani Creation Limited's (NSE:JAIPURKURT) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Nandani Creation's Annual General Meeting to take place on 30th of September
• Total pay for CEO Anuj Mundhra includes ₹6.60m salary
• The overall pay is 82% above the industry average
• Nandani Creation's EPS grew by 91% over the past three years while total shareholder loss over the past three years was 26%

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Shareholders of Nandani Creation Limited (NSE:JAIPURKURT) will have been dismayed by the negative share price return over the last three years. 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 30th of September could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. 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 Nandani Creation

Comparing Nandani Creation Limited's CEO Compensation With The Industry

Our data indicates that Nandani Creation Limited has a market capitalization of ₹434m, and total annual CEO compensation was reported as ₹6.6m for the year to March 2025. We note that's an increase of 31% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹6.6m.

On comparing similar-sized companies in the Indian Luxury industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹3.6m. Accordingly, our analysis reveals that Nandani Creation Limited pays Anuj Mundhra north of the industry median. What's more, Anuj Mundhra holds ₹123m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 1% is other remuneration. Speaking on a company level, Nandani Creation prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Nandani Creation Limited's Growth Numbers

Over the past three years, Nandani Creation Limited has seen its earnings per share (EPS) grow by 91% per year. In the last year, its revenue is up 44%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Nandani Creation Limited Been A Good Investment?

Given the total shareholder loss of 26% over three years, many shareholders in Nandani Creation Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Nandani Creation pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Nandani Creation that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.