This Is The Reason Why We Think Pennar Industries Limited's (NSE:PENIND) CEO Might Be Underpaid

Key Insights

• Pennar Industries will host its Annual General Meeting on 30th of September
• Total pay for CEO Aditya Rao includes ₹7.40m salary
• Total compensation is 41% below industry average
• Pennar Industries' EPS grew by 38% over the past three years while total shareholder return over the past three years was 475%

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Shareholders will be pleased by the impressive results for Pennar Industries Limited (NSE:PENIND) recently and CEO Aditya Rao has played a key role. At the upcoming AGM on 30th of September, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Pennar Industries

Comparing Pennar Industries Limited's CEO Compensation With The Industry

According to our data, Pennar Industries Limited has a market capitalization of ₹33b, and paid its CEO total annual compensation worth ₹11m over the year to March 2025. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is ₹7.40m, represents most of the total compensation being paid.

On examining similar-sized companies in the Indian Metals and Mining industry with market capitalizations between ₹18b and ₹71b, we discovered that the median CEO total compensation of that group was ₹18m. That is to say, Aditya Rao is paid under the industry median. Moreover, Aditya Rao also holds ₹2.2b worth of Pennar Industries 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	₹7.4m	₹8.9m	70%
Other	₹3.2m	₹1.6m	30%
Total Compensation	₹11m	₹11m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Pennar Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Pennar Industries Limited's Growth Numbers

Pennar Industries Limited's earnings per share (EPS) grew 38% per year over the last three years. Its revenue is up 7.2% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Pennar Industries Limited Been A Good Investment?

Boasting a total shareholder return of 475% over three years, Pennar Industries 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.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Pennar Industries that investors should look into moving forward.

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.