Jubilant FoodWorks down 15 percent on CEO Pratik Pota's exit
Published On: Monday, March 14, 2022 | By: Team KnowMyStock
Domino’s operator Jubilant FoodWorks share price tanked 15 percent to a fresh 52-week low of Rs 2,444 apiece following news of the resignation of the company’s CEO and whole-time director Pratik Rashmikant Pota.“The board of directors of Jubilant FoodWorks in their meeting held on March 11, 2022, accepted the resignation of Pratik Rashmikant Pota as the CEO and whole-time director of the company as he wishes to pursue opportunities outside Jubilant FoodWorks,” the company said in a statement. Pota will continue in his current role till June 15. Analysts say that consistent exits at the senior management level further add a question mark on the company’s ability to retain talent.“Although we remain positive about the longevity of the QSR industry and Jubilant’s superior business model, rich valuation remains a concern for us. We cut our EPS estimate by 6% and 4% for FY23 and FY24, owing to steep RM inflation, and macro headwinds,” analysts at HDFC Institutional Research said.
.Macquarie has downgraded the stock to 'underperform' while slashing its target to Rs 2,150 from Rs 3,550 earlier. Jefferies has cut its target to Rs 3,050 from Rs 3,750. Credit Suisse has reduced its target to Rs 2,900 from Rs 3,500. JP Morgan has slashed its target from Rs 4,025 to Rs 3,000.
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