We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Ramkrishna Forgings Limited's (NSE:RKFORGE) CEO For Now
Key Insights
- Ramkrishna Forgings will host its Annual General Meeting on 20th of September
- Total pay for CEO Naresh Jalan includes ₹25.1m salary
- Total compensation is 74% above industry average
- Ramkrishna Forgings' EPS grew by 4.4% over the past three years while total shareholder return over the past three years was 182%
CEO Naresh Jalan has done a decent job of delivering relatively good performance at Ramkrishna Forgings Limited (NSE:RKFORGE) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 20th of September. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Ramkrishna Forgings
How Does Total Compensation For Naresh Jalan Compare With Other Companies In The Industry?
Our data indicates that Ramkrishna Forgings Limited has a market capitalization of ₹104b, and total annual CEO compensation was reported as ₹48m for the year to March 2025. Notably, that's a decrease of 19% over the year before. We note that the salary of ₹25.1m makes up a sizeable portion of the total compensation received by the CEO.
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 ₹28m. Hence, we can conclude that Naresh Jalan is remunerated higher than the industry median. What's more, Naresh Jalan holds ₹3.4b 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 | ₹25m | ₹23m | 52% |
| Other | ₹23m | ₹36m | 48% |
| Total Compensation | ₹48m | ₹59m | 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. Ramkrishna Forgings sets aside a smaller share of compensation for salary, in comparison to the overall 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 Ramkrishna Forgings Limited's Growth Numbers
Ramkrishna Forgings Limited's earnings per share (EPS) grew 4.4% per year over the last three years. In the last year, its revenue changed by just 0.5%.
We'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 Ramkrishna Forgings Limited Been A Good Investment?
Boasting a total shareholder return of 182% over three years, Ramkrishna Forgings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Ramkrishna Forgings (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Important note: Ramkrishna Forgings 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.
Valuation is complex, but we're here to simplify it.
Discover if Ramkrishna Forgings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.