Stock Analysis

Shareholders Will Most Likely Find Mohini Health & Hygiene Limited's (NSE:MHHL) CEO Compensation Acceptable

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Key Insights

CEO Avnish Bansal has done a decent job of delivering relatively good performance at Mohini Health & Hygiene Limited (NSE:MHHL) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of September. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Mohini Health & Hygiene

Comparing Mohini Health & Hygiene Limited's CEO Compensation With The Industry

Our data indicates that Mohini Health & Hygiene Limited has a market capitalization of ₹1.3b, and total annual CEO compensation was reported as ₹8.4m for the year to March 2023. We note that's an increase of 75% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹8.4m.

In comparison with other companies in the India Medical Equipment industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹8.4m. So it looks like Mohini Health & Hygiene compensates Avnish Bansal in line with the median for the industry. Moreover, Avnish Bansal also holds ₹745m worth of Mohini Health & Hygiene stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20232022Proportion (2023)
Salary ₹8.4m ₹4.8m 100%
Other - - -
Total Compensation₹8.4m ₹4.8m100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. On a company level, Mohini Health & Hygiene prefers to reward its CEO through a salary, opting not to pay Avnish Bansal through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

NSEI:MHHL CEO Compensation September 24th 2023

A Look at Mohini Health & Hygiene Limited's Growth Numbers

Mohini Health & Hygiene Limited has seen its earnings per share (EPS) increase by 1.3% a year over the past three years. In the last year, its revenue is up 41%.

It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. We wouldn't say this is necessarily top notch growth, but it is certainly promising. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Mohini Health & Hygiene Limited Been A Good Investment?

Boasting a total shareholder return of 329% over three years, Mohini Health & Hygiene Limited has done well by shareholders. 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...

Mohini Health & Hygiene rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Mohini Health & Hygiene that investors should think about before committing capital to this 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.

Valuation is complex, but we're helping make it simple.

Find out whether Mohini Health & Hygiene is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.