We Think Gravita India Limited's (NSE:GRAVITA) CEO Compensation Looks Fair

Key Insights

• Gravita India will host its Annual General Meeting on 8th of September
• Salary of ₹9.00m is part of CEO Yogesh Malhotra's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Gravita India's EPS grew by 25% and over the past three years, the total shareholder return was 402%

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The performance at Gravita India Limited (NSE:GRAVITA) has been quite strong recently and CEO Yogesh Malhotra has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 8th of September. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Gravita India

How Does Total Compensation For Yogesh Malhotra Compare With Other Companies In The Industry?

According to our data, Gravita India Limited has a market capitalization of ₹118b, and paid its CEO total annual compensation worth ₹47m over the year to March 2025. That's a notable decrease of 42% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹9.0m.

For comparison, other companies in the Indian Metals and Mining industry with market capitalizations ranging between ₹88b and ₹282b had a median total CEO compensation of ₹42m. This suggests that Gravita India remunerates its CEO largely in line with the industry average. What's more, Yogesh Malhotra holds ₹16m 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, all of total compensation represents salary, while non-salary remuneration is completely ignored. Gravita India sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Gravita India Limited's Growth Numbers

Over the past three years, Gravita India Limited has seen its earnings per share (EPS) grow by 25% per year. Its revenue is up 19% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Gravita India Limited Been A Good Investment?

Boasting a total shareholder return of 402% over three years, Gravita India Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Gravita India that investors should look into moving forward.

Important note: Gravita India 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.