Here's Why Shareholders May Want To Be Cautious With Increasing Nahar Industrial Enterprises Limited's (NSE:NAHARINDUS) CEO Pay Packet

Key Insights

• Nahar Industrial Enterprises to hold its Annual General Meeting on 29th of September
• Total pay for CEO Kamal Oswal includes ₹91.3m salary
• The total compensation is 2,609% higher than the average for the industry
• Nahar Industrial Enterprises' total shareholder return over the past three years was 5.6% while its EPS was down 49% over the past three years

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Despite Nahar Industrial Enterprises Limited's (NSE:NAHARINDUS) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 29th of September. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Check out our latest analysis for Nahar Industrial Enterprises

How Does Total Compensation For Kamal Oswal Compare With Other Companies In The Industry?

Our data indicates that Nahar Industrial Enterprises Limited has a market capitalization of ₹5.1b, and total annual CEO compensation was reported as ₹98m for the year to March 2025. That's mostly flat as compared to the prior year's compensation. In particular, the salary of ₹91.3m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Luxury industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹3.6m. Accordingly, our analysis reveals that Nahar Industrial Enterprises Limited pays Kamal Oswal north of the industry median.

Talking in terms of the industry, salary represented approximately 99% of total compensation out of all the companies we analyzed, while other remuneration made up 1% of the pie. Nahar Industrial Enterprises is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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 Nahar Industrial Enterprises Limited's Growth Numbers

Over the last three years, Nahar Industrial Enterprises Limited has shrunk its earnings per share by 49% per year. Its revenue is up 9.0% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Nahar Industrial Enterprises Limited Been A Good Investment?

With a total shareholder return of 5.6% over three years, Nahar Industrial Enterprises Limited has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Nahar Industrial Enterprises (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.