Mold-Tek Packaging Limited's (NSE:MOLDTKPAC) CEO Will Probably Find It Hard To See A Huge Raise This Year
Key Insights
- Mold-Tek Packaging to hold its Annual General Meeting on 30th of September
- Total pay for CEO Lakshmana Janumahanti includes ₹24.0m salary
- Total compensation is similar to the industry average
- Over the past three years, Mold-Tek Packaging's EPS fell by 4.0% and over the past three years, the total loss to shareholders 11%
In the past three years, the share price of Mold-Tek Packaging Limited (NSE:MOLDTKPAC) has struggled to generate growth for its shareholders. Per share earnings growth is also poor, despite revenues growing. Shareholders will have a chance to take their concerns to the board at the next AGM on 30th of September and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.
Check out our latest analysis for Mold-Tek Packaging
How Does Total Compensation For Lakshmana Janumahanti Compare With Other Companies In The Industry?
Our data indicates that Mold-Tek Packaging Limited has a market capitalization of ₹27b, and total annual CEO compensation was reported as ₹33m for the year to March 2025. Notably, that's an increase of 28% over the year before. In particular, the salary of ₹24.0m, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar companies from the Indian Packaging industry with market caps ranging from ₹18b to ₹71b, we found that the median CEO total compensation was ₹38m. This suggests that Mold-Tek Packaging remunerates its CEO largely in line with the industry average. What's more, Lakshmana Janumahanti holds ₹2.5b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹24m | ₹21m | 73% |
| Other | ₹8.9m | ₹4.7m | 27% |
| Total Compensation | ₹33m | ₹26m | 100% |
Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Mold-Tek Packaging pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Mold-Tek Packaging Limited's Growth Numbers
Mold-Tek Packaging Limited has reduced its earnings per share by 4.0% a year over the last three years. Its revenue is up 16% over the last year.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Mold-Tek Packaging Limited Been A Good Investment?
With a three year total loss of 11% for the shareholders, Mold-Tek Packaging Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
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 1 warning sign for Mold-Tek Packaging that investors should think about before committing capital to this stock.
Important note: Mold-Tek Packaging 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.