Prateek Rashmikant Pota, CEO and Whole Time Director of Jubilant FoodWorks has resigned from his position. This has put a question mark on the business strategy of the company.
There is a huge decline in the shares of Jubilant FoodWorks today. In the intraday, this stock weakened 15 percent to reach a price of Rs 2443. Whereas on Friday the stock closed at Rs 2865. In fact, Prateek Rashmikant Pota, CEO and Whole Time Director of Jubilant FoodWorks has resigned from his post. This has put a question mark on the business strategy of the company, due to which the sentiment of the investors has deteriorated. Most of the brokerage houses are also looking negative or neutral about the stock and have made a big cut in the target price. This stock has weakened 31 percent so far this year. Further decline is expected.
Share on Global Brokerage House
Brokerage house Morgan Stanley has given an underweight rating on Jubilant FoodWorks. The brokerage has reduced the target for the stock to Rs 2250. According to the report, the sudden departure of the CEO will raise questions on the business strategy of the company. Due to this the near term outlook on the stock has weakened. The brokerage has cut the EPS estimate for FY23 by 15 per cent and for FY24 by 24 per cent.
Brokerage house JP Morgan has given a neutral rating in the stock and has set a target of Rs 3000. According to the brokerage, the sudden resignation of the CEO has created a situation of uncertainty. At the same time, the rating has also been reduced due to margin risk.
Brokerage house Macquarie has also rated underperform for the stock and has given a target of Rs 2,150. The brokerage says that after such resignation of the CEO, there has been concern about earnings growth and execution.
how is the valuation of the share
Brokerage house Motilal Oswal believes that there is uncertainty in the near term due to the departure of the CEO. But if seen, the stock has weakened by 45 to 46 percent from its record high. There may be some momentum going forward from here. It’s still not cheap though. While advising Nivea in the stock, the brokerage has given a target of Rs 3680. The brokerage says that the CEO’s departure is a surprise. He has taken many initiatives for the company during his tenure.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
,