Godrej Consumer Products shares tank 10% after CEO’s sudden exit; HSBC downgrades to Hold
Godrej Consumer Products shares declined 10% following the sudden resignation of CEO Sudhir Sitapati, who announced his work was finished and it was time for new beginnings. HSBC nalysts have since downgraded the stock, highlighting potential uncertainties and execution hurdles ahead, despite the company showcasing strong Q1 performance with impressive profit and revenue growth. Aasif Malbari is…
Shares of Godrej Consumer Products Ltd., the leading FMCG company, experienced a significant plunge of 10% to Rs 916 on the BSE after the abrupt resignation of their CEO, Sudhir Sitapati. In his resignation letter, Sitapati stated that the company's total shareholder return from May 2021 to August 2023 was 10%, which was higher than the NIFTY FMCG index's 8%.
He also highlighted that 97% of analysts rate the stock either Buy or Hold, indicating strong confidence in the sector. Sitapati expressed that the task he had set for himself at GCPL was complete and it was the right time for him to step down. HSBC, a major brokerage firm, downgraded GCPL to a Hold rating and reduced its target price to Rs 1,120, citing the sudden departure of the CEO.
CLSA rated GCPL as Underperform with a target price of Rs 772, emphasizing the challenge of improving outcomes in two key categories: personal wash and household insecticides. Aasif Malbari, the former CFO, will now take over as CEO. Despite the setback, Citi has retained its Buy rating for GCPL, expecting no immediate strategic changes from the management.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
