Shares of Jubilant FoodWorks tank after CEO Pratik Pota resigns

FPJ Web DeskUpdated: Monday, March 14, 2022, 12:01 PM IST
article-image
At 11.51 AM, the stock declined 13.06 percent or Rs 374.10 to Rs 2,490.50 per share/ Representative image |

Shares of Jubilant FoodWorks, a master franchise of brands such as Domino's Pizza and Dunkin Donuts, tanked as much as 15 percent on Monday as the company’s board of directors accepted the resignation of Pratik Rashmikant Pota as the CEO and Whole-time Director of the food-service company.

At 11.51 AM, the stock declined 13.06 percent or Rs 374.10 to Rs 2,490.50 per share.

At 9:47 AM, shares of the company were trading 13.8 percent lower at Rs 2,468.8 on BSE. It hit a new 52-week low at Rs 2,465.05.

Parth Nyati, Founder, Tradingo, said, the shares tumbled sharply as there is "knee-jerk reaction and various downgrades on the stock price because the stock has witnessed re-rating in the last few years. Pota brought a lot of changes in the business model when the stock went to 60PE from 40PE of its one year-forward earnings. However, the stock has already corrected significantly from its 52-week high."

The outlook of the company is still very strong. With the IPL going to start soon, there may be buying interest at lower levels. The market will watch for the new name of the CEO before any meaningful recovery, Nyati said.

Technically, the stock is trading near the critical demand zone of 2,500-2,400 where some buying can be expected. If the stock it slips below 2,400 then 2,100 will be the next important support level. On the upside, the 2,900-3,000 area will act as an immediate resistance zone at any pullback, Niyati said.

CEO resigns on Friday

On Friday, the company said its CEO Pratik Rashmikant Pota has resigned.

The company's board on Friday accepted the resignation of Pota as the CEO and Wholetime Director of the firm as he wishes to pursue opportunities outside Jubilant FoodWorks, the company said in a regulatory filing.

Pota will continue in his current role till June 15, 2022, it added.

In a meeting held on Friday, the company's board placed on record its appreciation for the contribution made by Pota during his tenure with the firm.

The board has also initiated the process of identifying his successor, Jubilant FoodWorks stated.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

PM Modi goes old school, ditches teleprompter for Independence Day speech

PM Modi goes old school, ditches teleprompter for Independence Day speech

'Corruption is damaging country like termite, country will have to fight it,' says PM Modi in his...

'Corruption is damaging country like termite, country will have to fight it,' says PM Modi in his...

POTUS Biden hails its 'indispensable' partner India on the 75th Independence Day

POTUS Biden hails its 'indispensable' partner India on the 75th Independence Day

On Independence Day, PM Modi bats for 'Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan'

On Independence Day, PM Modi bats for 'Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan'

Watch video | 'Let's pledge to stop insulting, disrespecting women': PM Modi gets emotional in...

Watch video | 'Let's pledge to stop insulting, disrespecting women': PM Modi gets emotional in...