Story thread · 3 reports / 3 sources

Godrej Consumer Products shares tank 10% after CEO’s sudden exit; HSBC downgrades to Hold

economictimes.indiatimes.com · 3h · first reportShare

Shares of FMCG major Godrej Consumer Products Ltd. (GCPL) crashed as much as 10% to an intra-day low of Rs 916 on the BSE on Wednesday, following the company's announcement of Managing Director and Chief Executive Officer (MD & CEO) Sudhir Sitapati's sudden resignation with immediate effect.In his resignation letter, Sudhir Sitapati said that GCPL's total shareholder return averaged around 10% from May 7, 2021, when his appointment was announced, through August 9, compared with around 8% for the NIFTY FMCG index.He noted that 97% of analysts currently rate the stock either Buy or Hold, among the highest levels in the sector. Sitapati also highlighted that as India's FMCG sector emerges from a difficult period, GCPL's growth has been accelerating, with Q1 FY27 revenue growth at 19% and underlying volume growth at 9%, both multi-quarter highs.He said he felt the task he had set for himself at GCPL was complete and that it was the right time for him to move on.Following the development, H