This Is Why Bhagiradha Chemicals & Industries Limited's (NSE:BHAGCHEM) CEO Compensation Looks Appropriate
Key Insights
- Bhagiradha Chemicals & Industries' Annual General Meeting to take place on 22nd of August
- Salary of ₹9.00m is part of CEO Arvind Anegondi's total remuneration
- The overall pay is 54% below the industry average
- Bhagiradha Chemicals & Industries' EPS declined by 41% over the past three years while total shareholder return over the past three years was 128%
Shareholders may be wondering what CEO Arvind Anegondi plans to do to improve the less than great performance at Bhagiradha Chemicals & Industries Limited (NSE:BHAGCHEM) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 22nd of August. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.
Check out our latest analysis for Bhagiradha Chemicals & Industries
Comparing Bhagiradha Chemicals & Industries Limited's CEO Compensation With The Industry
According to our data, Bhagiradha Chemicals & Industries Limited has a market capitalization of ₹36b, and paid its CEO total annual compensation worth ₹12m over the year to March 2025. We note that's an increase of 27% above last year. We note that the salary portion, which stands at ₹9.00m constitutes the majority of total compensation received by the CEO.
On examining similar-sized companies in the Indian Chemicals industry with market capitalizations between ₹17b and ₹70b, we discovered that the median CEO total compensation of that group was ₹27m. In other words, Bhagiradha Chemicals & Industries pays its CEO lower than the industry median. Moreover, Arvind Anegondi also holds ₹24m worth of Bhagiradha Chemicals & Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹9.0m | ₹7.2m | 73% |
| Other | ₹3.3m | ₹2.5m | 27% |
| Total Compensation | ₹12m | ₹9.7m | 100% |
Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. Bhagiradha Chemicals & Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Bhagiradha Chemicals & Industries Limited's Growth Numbers
Over the last three years, Bhagiradha Chemicals & Industries Limited has shrunk its earnings per share by 41% per year. In the last year, its revenue is up 8.1%.
Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Bhagiradha Chemicals & Industries Limited Been A Good Investment?
Most shareholders would probably be pleased with Bhagiradha Chemicals & Industries Limited for providing a total return of 128% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Bhagiradha Chemicals & Industries that investors should look into moving forward.
Important note: Bhagiradha Chemicals & Industries 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.