Pratik Pota, the CEO of JUBILANT FOODWORKS has resigned. He will step down from the company on June 15. Pratik Pota took over the command of the company in 2017. On the other hand, the brokerage is looking disappointed with the resignation of the CEO and Morgan Stanley has reduced the target from 5000 to 2250. Let us inform that when Pratik Pota joined the company, its share price was Rs 423 per share, while during his tenure the all-time high level of the company’s stock was Rs 4577 per share.
On the other hand, if we look at the growth story of Jubilant Food, there was a significant increase in the company’s growth from 2017 to 2021. The company’s revenue grew by 55 percent during this period. While the EBITDA of the company increased by 3 times. At the same time, the company’s profit increased by 5 times in the period 2017 to 2021.
BROKERAGES ON JUBILANT FOOD
Opinion on JUBILANT FOOD from CREDIT SUISSE
CREDIT SUISSE has given Neutral Rating on JUBILANT FOOD and has fixed the share target of Rs 2,900 per share from Rs 3500 per share. they say that
The company has suffered a setback due to the resignation of CEO Pratik Pota. In the current situation, there has been a setback in the change in leadership.
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MORGAN STANLEY’s opinion on JUBILANT FOOD
MORGAN STANLEY has downgraded the rating on JUBILANT FOOD from overweight to underweight. Along with this, he has reduced its target from 5000 to 2250 rupees. He says that the company’s strategy has been questioned due to the departure of the CEO. They have reduced its FY23/24 EPS by 15%/24%. According to him, the company is well positioned for a long-term growth story in organized food. But the sudden change in leadership has cast doubt on the near-term output.
JP MORGAN’s opinion on JUBILANT FOOD
JP MORGAN has downgraded the rating on JUBILANT FOOD from overweight to neutral. Along with this, its target has been reduced from Rs 4025 to Rs 3000. He says the unexpected CEO’s resignation has created uncertainty. They have lowered its EPS estimate for FY23/24 to 11%/8% after margin cut.
MACQUARIE’s Opinion on JUBILANT FOOD
MACQUARIE has downgraded Rating on JUBILANT FOOD to Underperform Rating and has lowered target of Share from Rs.3550 to Rs.2150. He says the CEO’s resignation has raised concerns about Execution & Earnings Growth. They have reduced its EPS estimate for FY22/23/24 to 3%/13%/15%.
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