Shareholders May Find It Hard To Justify Increasing Texmo Pipes and Products Limited's (NSE:TEXMOPIPES) CEO Compensation For Now
Key Insights
- Texmo Pipes and Products to hold its Annual General Meeting on 26th of September
- CEO Mohit Agrawal's total compensation includes salary of ₹7.20m
- Total compensation is similar to the industry average
- Texmo Pipes and Products' EPS grew by 20% over the past three years while total shareholder loss over the past three years was 6.4%
In the past three years, the share price of Texmo Pipes and Products Limited (NSE:TEXMOPIPES) has struggled to generate growth for its shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 26th of September. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for Texmo Pipes and Products
How Does Total Compensation For Mohit Agrawal Compare With Other Companies In The Industry?
According to our data, Texmo Pipes and Products Limited has a market capitalization of ₹1.7b, and paid its CEO total annual compensation worth ₹7.2m over the year to March 2025. This was the same as last year. Notably, the salary of ₹7.2m is the entirety of the CEO compensation.
On comparing similar-sized companies in the Indian Chemicals industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹6.1m. From this we gather that Mohit Agrawal is paid around the median for CEOs in the industry.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹7.2m | ₹7.2m | 100% |
| Other | - | - | - |
| Total Compensation | ₹7.2m | ₹7.2m | 100% |
Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. On a company level, Texmo Pipes and Products prefers to reward its CEO through a salary, opting not to pay Mohit Agrawal through non-salary benefits. 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.
Texmo Pipes and Products Limited's Growth
Texmo Pipes and Products Limited has seen its earnings per share (EPS) increase by 20% a year over the past three years. It saw its revenue drop 16% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Texmo Pipes and Products Limited Been A Good Investment?
With a three year total loss of 6.4% for the shareholders, Texmo Pipes and Products Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Texmo Pipes and Products pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders 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.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Texmo Pipes and Products that investors should be aware of in a dynamic business environment.
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.