What Did Alphageo (India) Limited’s (NSE:ALPHAGEO) CEO Take Home Last Year?
Dinesh Alla became the CEO of Alphageo (India) Limited (NSE:ALPHAGEO) in 1991. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Alphageo (India)
How Does Dinesh Alla’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Alphageo (India) Limited has a market cap of ₹2.8b, and is paying total annual CEO compensation of ₹48m. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹12m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO compensation in that group is ₹1.3m.
Thus we can conclude that Dinesh Alla receives more in total compensation than the median of a group of companies in the same market, and of similar size to Alphageo (India) Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Alphageo (India) has changed over time.
Is Alphageo (India) Limited Growing?
On average over the last three years, Alphageo (India) Limited has grown earnings per share (EPS) by 40% each year (using a line of best fit). In the last year, its revenue is up 3.0%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Alphageo (India) Limited Been A Good Investment?
Since shareholders would have lost about 18% over three years, some Alphageo (India) Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We examined the amount Alphageo (India) Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Alphageo (India).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
