It will be very important for the company to find a strong CEO to replace him," said Prem Prakash, CEO at CapitalVia Global Research. There were many key measures that were taken under his tenure which helped the franchise pivot to the top of the industry. " The resignation of Mr Pota adds to risk on all fronts, as the outgoing CEO addressed key challenges and boosted confidence in growth longevity, during his tenure. While he has developed a good second rung, we will have to watch out for his successor and the strategic outlook ahead," it said. "We believe the exit of Pratik Pota could have an adverse short-term impact on the stock, considering the phenomenal efforts during his tenure. ![]() Brokerage Motilal Oswal Financial Services said Pota's resignation is a "negative" surprise since the Board had approved his re-appointment last year for three years from April 2022 until March 2025. Besides, unexpected resignation from the CEO reflects uncertainty in the company, noted the brokerage. JP Morgan downgraded its rating on the company due to increasing demand and margin risks. On the upside, the 2900-3000 area will act as an immediate resistance zone at any pullback, added Nyati. Technically, it is trading near the critical demand zone of 2500-2400 where we can expect some buying while if it slips below 2400 then 2100 will be the next important support level. Even the company's stock price has surged five-fold during the same period. During Pota's five-year tenure, the company's net sales and net profit grew at a CAGR of 6.4% and 41.5%, respectively, with the Ebitda margin climbing from 9.4% in FY17 to 25.5% to FY21, according to data analysed by ET Intelligence. Pota had joined Jubilant FoodWorks in 2017 when the company was struggling with a sluggish performance and is credited with the company’s turnaround. ![]() ![]() Jubilant holds the exclusive franchise rights for Domino's Pizza and Dunkin Donuts in India, Sri Lanka, Bangladesh, and Nepal. The Board has also initiated the process of identifying his successor. Brokerages view his departure as a setback for the foodservice company's expansion plans, even though Pota will continue in his current role till June 15, 2022. NEW DELHI: Shares of Jubilant FoodWorks fell 14 percent on Monday morning, the most in two years, after analysts said the sudden exit of its chief executive officer and wholetime director Pratik Pota will be a short-term risk for the company.
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