It's Unlikely That The Sandesh Limited's (NSE:SANDESH) CEO Will See A Huge Pay Rise This Year
Key Insights
- Sandesh will host its Annual General Meeting on 25th of September
- Salary of ₹10.3m is part of CEO Falgunbhai Patel's total remuneration
- The overall pay is 630% above the industry average
- Sandesh's EPS declined by 1.2% over the past three years while total shareholder return over the past three years was 59%
Despite strong share price growth of 59% for The Sandesh Limited (NSE:SANDESH) over the last few years, earnings growth has been disappointing, which suggests something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 25th of September. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.
View our latest analysis for Sandesh
How Does Total Compensation For Falgunbhai Patel Compare With Other Companies In The Industry?
Our data indicates that The Sandesh Limited has a market capitalization of ₹9.1b, and total annual CEO compensation was reported as ₹40m for the year to March 2025. Notably, that's a decrease of 17% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹10m.
On comparing similar-sized companies in the Indian Media industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹5.4m. Hence, we can conclude that Falgunbhai Patel is remunerated higher than the industry median. What's more, Falgunbhai Patel holds ₹633m 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 | ₹10m | ₹10m | 26% |
| Other | ₹29m | ₹38m | 74% |
| Total Compensation | ₹40m | ₹48m | 100% |
Talking in terms of the industry, salary represented approximately 100% of total compensation out of all the companies we analyzed, while other remuneration made up 0.30108504% of the pie. In Sandesh's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at The Sandesh Limited's Growth Numbers
The Sandesh Limited has reduced its earnings per share by 1.2% a year over the last three years. In the last year, its revenue is down 33%.
Its a bit disappointing to see that the company has failed to grow its EPS. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has The Sandesh Limited Been A Good Investment?
Most shareholders would probably be pleased with The Sandesh Limited for providing a total return of 59% over three years. 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...
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. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Sandesh that investors should think about before committing capital to this stock.
Switching gears from Sandesh, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
Valuation is complex, but we're here to simplify it.
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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.