Hi-Tech Pipes Limited's (NSE:HITECH) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Hi-Tech Pipes' Annual General Meeting to take place on 27th of September
• Salary of ₹14.4m is part of CEO Ajay Bansal's total remuneration
• The total compensation is similar to the average for the industry
• Hi-Tech Pipes' total shareholder return over the past three years was 103% while its EPS grew by 8.1% over the past three years

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Performance at Hi-Tech Pipes Limited (NSE:HITECH) has been reasonably good and CEO Ajay Bansal has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 27th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Hi-Tech Pipes

How Does Total Compensation For Ajay Bansal Compare With Other Companies In The Industry?

According to our data, Hi-Tech Pipes Limited has a market capitalization of ₹25b, and paid its CEO total annual compensation worth ₹14m over the year to March 2025. This was the same amount the CEO received in the prior year. Notably, the salary of ₹14m is the entirety of the CEO compensation.

On examining similar-sized companies in the Indian Metals and Mining industry with market capitalizations between ₹8.8b and ₹35b, we discovered that the median CEO total compensation of that group was ₹12m. This suggests that Hi-Tech Pipes remunerates its CEO largely in line with the industry average. Moreover, Ajay Bansal also holds ₹5.4b worth of Hi-Tech Pipes stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Speaking on a company level, Hi-Tech Pipes prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Hi-Tech Pipes Limited's Growth Numbers

Hi-Tech Pipes Limited has seen its earnings per share (EPS) increase by 8.1% a year over the past three years. Its revenue is up 2.3% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Hi-Tech Pipes Limited Been A Good Investment?

We think that the total shareholder return of 103%, over three years, would leave most Hi-Tech Pipes Limited shareholders smiling. 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...

Hi-Tech Pipes pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Hi-Tech Pipes that investors should be aware of in a dynamic business environment.

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.