Sharda Motors - Red flag?

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by Raghav Behani, Dec 5, 2018.


Is it justified for MD's Mother to withdraw Rs 4.5 Crores as salary from the company?

Poll closed Jan 4, 2019.
  1. Yes

    0 vote(s)
  2. No

  1. Raghav Behani

    Raghav Behani New Member

    Dec 5, 2018
    Likes Received:
    Sharda Motors is run by the Relan family, headed by Mr Ajay Relan (MD). The Mother of the Managing Director is 82 years old - Mrs. Sharda Relan.

    She is withdrawing a salary of ~ Rs 4.5 Crores+ from the company. The entire Net Profit of the company is Rs 88 Crores (consolidated). With due respect to the Mother, it is ~ 5% of the net profit that belongs to all shareholders being taken away from the business with no value addition. The promoters controls ~ 73% of the company.

    Would you justify / be alright with such practices in a company?

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