Shareholders Will Probably Not Have Any Issues With Sharda Cropchem Limited's (NSE:SHARDACROP) CEO Compensation

Key Insights

• Sharda Cropchem to hold its Annual General Meeting on 14th of August
• CEO Ramprakash Bubna's total compensation includes salary of ₹22.5m
• The overall pay is comparable to the industry average
• Sharda Cropchem's EPS grew by 7.9% over the past three years while total shareholder return over the past three years was 101%

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Performance at Sharda Cropchem Limited (NSE:SHARDACROP) has been reasonably good and CEO Ramprakash Bubna has done a decent job of steering the company in the right direction. 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 14th of August. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Sharda Cropchem

Comparing Sharda Cropchem Limited's CEO Compensation With The Industry

According to our data, Sharda Cropchem Limited has a market capitalization of ₹90b, and paid its CEO total annual compensation worth ₹44m over the year to March 2025. Notably, that's a decrease of 32% over the year before. In particular, the salary of ₹22.5m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Chemicals industry with market capitalizations ranging between ₹35b and ₹140b had a median total CEO compensation of ₹36m. This suggests that Sharda Cropchem remunerates its CEO largely in line with the industry average. Moreover, Ramprakash Bubna also holds ₹14b worth of Sharda Cropchem stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. In Sharda Cropchem's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader 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.

Sharda Cropchem Limited's Growth

Sharda Cropchem Limited has seen its earnings per share (EPS) increase by 7.9% a year over the past three years. It achieved revenue growth of 37% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. We wouldn't say this is necessarily top notch growth, but it is certainly promising. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sharda Cropchem Limited Been A Good Investment?

We think that the total shareholder return of 101%, over three years, would leave most Sharda Cropchem 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...

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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in Sharda Cropchem we think you should know about.

Important note: Sharda Cropchem 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.