Shareholders May Not Be So Generous With UFO Moviez India Limited's (NSE:UFO) CEO Compensation And Here's Why

Key Insights

• UFO Moviez India's Annual General Meeting to take place on 19th of August
• Salary of ₹9.24m is part of CEO Rajesh Mishra's total remuneration
• The total compensation is 556% higher than the average for the industry
• Over the past three years, UFO Moviez India's EPS grew by 123% and over the past three years, the total loss to shareholders 25%

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The underwhelming share price performance of UFO Moviez India Limited (NSE:UFO) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 19th of August. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for UFO Moviez India

How Does Total Compensation For Rajesh Mishra Compare With Other Companies In The Industry?

At the time of writing, our data shows that UFO Moviez India Limited has a market capitalization of ₹2.9b, and reported total annual CEO compensation of ₹21m for the year to March 2025. Notably, that's an increase of 28% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹9.2m.

On comparing similar-sized companies in the India Entertainment industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹3.2m. Accordingly, our analysis reveals that UFO Moviez India Limited pays Rajesh Mishra north of the industry median.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. It's interesting to note that UFO Moviez India allocates a smaller portion of compensation to salary 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 UFO Moviez India Limited's Growth Numbers

Over the past three years, UFO Moviez India Limited has seen its earnings per share (EPS) grow by 123% per year. In the last year, its revenue is up 4.5%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 UFO Moviez India Limited Been A Good Investment?

With a three year total loss of 25% for the shareholders, UFO Moviez India Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. 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 is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for UFO Moviez India that investors should be aware of in a dynamic business environment.

Important note: UFO Moviez India 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.