We Discuss Whether Ashapura Minechem Limited's (NSE:ASHAPURMIN) CEO Is Due For A Pay Rise
Key Insights
- Ashapura Minechem will host its Annual General Meeting on 24th of September
- Salary of ₹6.65m is part of CEO Hemul Shah's total remuneration
- The overall pay is 76% below the industry average
- Ashapura Minechem's total shareholder return over the past three years was 568% while its EPS grew by 73% over the past three years
The solid performance at Ashapura Minechem Limited (NSE:ASHAPURMIN) has been impressive and shareholders will probably be pleased to know that CEO Hemul Shah has delivered. This would be kept in mind at the upcoming AGM on 24th of September which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.
View our latest analysis for Ashapura Minechem
Comparing Ashapura Minechem Limited's CEO Compensation With The Industry
At the time of writing, our data shows that Ashapura Minechem Limited has a market capitalization of ₹60b, and reported total annual CEO compensation of ₹6.7m for the year to March 2025. We note that's a decrease of 8.6% compared to last year. Notably, the salary of ₹6.7m is the entirety of the CEO compensation.
On examining similar-sized companies in the Indian Metals and Mining industry with market capitalizations between ₹35b and ₹141b, we discovered that the median CEO total compensation of that group was ₹27m. That is to say, Hemul Shah is paid under the industry median. Moreover, Hemul Shah also holds ₹630k worth of Ashapura Minechem stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹6.7m | ₹7.3m | 100% |
| Other | - | - | - |
| Total Compensation | ₹6.7m | ₹7.3m | 100% |
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. Speaking on a company level, Ashapura Minechem 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.
Ashapura Minechem Limited's Growth
Ashapura Minechem Limited's earnings per share (EPS) grew 73% per year over the last three years. Its revenue is up 44% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Ashapura Minechem Limited Been A Good Investment?
Boasting a total shareholder return of 568% over three years, Ashapura Minechem 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...
Ashapura Minechem rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Ashapura Minechem (1 shouldn't be ignored!) that you should be aware of before investing here.
Important note: Ashapura Minechem 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.