S.P. Apparels Limited's (NSE:SPAL) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• S.P. Apparels' Annual General Meeting to take place on 1st of September
• CEO Sundararajan Mudaliar's total compensation includes salary of ₹12.0m
• The total compensation is similar to the average for the industry
• Over the past three years, S.P. Apparels' EPS grew by 0.4% and over the past three years, the total shareholder return was 63%

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Under the guidance of CEO Sundararajan Mudaliar, S.P. Apparels Limited (NSE:SPAL) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 1st of September. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for S.P. Apparels

How Does Total Compensation For Sundararajan Mudaliar Compare With Other Companies In The Industry?

Our data indicates that S.P. Apparels Limited has a market capitalization of ₹18b, and total annual CEO compensation was reported as ₹24m for the year to March 2025. This was the same amount the CEO received in the prior year. In particular, the salary of ₹12.0m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Luxury industry with market capitalizations ranging from ₹8.8b to ₹35b, the reported median CEO total compensation was ₹20m. From this we gather that Sundararajan Mudaliar is paid around the median for CEOs in the industry. What's more, Sundararajan Mudaliar holds ₹9.1b 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 98% of total compensation represents salary, while the remainder of 2% is other remuneration. In S.P. Apparels' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry.

S.P. Apparels Limited's Growth

S.P. Apparels Limited saw earnings per share stay pretty flat over the last three years. Its revenue is up 43% over the last year.

We like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has S.P. Apparels Limited Been A Good Investment?

Most shareholders would probably be pleased with S.P. Apparels Limited for providing a total return of 63% over three years. 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.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for S.P. Apparels you should be aware of, and 1 of them can't be ignored.

Important note: S.P. Apparels 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.