Most Shareholders Will Probably Find That The CEO Compensation For Sagar Cements Limited (NSE:SAGCEM) Is Reasonable

Key Insights

• Sagar Cements to hold its Annual General Meeting on 30th of June
• Total pay for CEO Anand Sammidi includes ₹25.4m salary
• The overall pay is comparable to the industry average
• Over the past three years, Sagar Cements' EPS fell by 81% and over the past three years, the total shareholder return was 40%

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Sagar Cements Limited (NSE:SAGCEM) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. The upcoming AGM on 30th of June may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

View our latest analysis for Sagar Cements

Comparing Sagar Cements Limited's CEO Compensation With The Industry

Our data indicates that Sagar Cements Limited has a market capitalization of ₹31b, and total annual CEO compensation was reported as ₹43m for the year to March 2025. That's a notable increase of 15% on last year. We note that the salary of ₹25.4m makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Indian Basic Materials industry with market capitalizations ranging from ₹17b to ₹69b, the reported median CEO total compensation was ₹39m. So it looks like Sagar Cements compensates Anand Sammidi in line with the median for the industry. Moreover, Anand Sammidi also holds ₹3.5b worth of Sagar Cements stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. Sagar Cements sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Sagar Cements Limited's Growth Numbers

Sagar Cements Limited has reduced its earnings per share by 81% a year over the last three years. Its revenue is down 9.9% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sagar Cements Limited Been A Good Investment?

Most shareholders would probably be pleased with Sagar Cements Limited for providing a total return of 40% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Sagar Cements (1 is concerning!) that you should be aware of before investing here.

Important note: Sagar Cements 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.