Investors in panic mode as Crompton Greaves' stock price tanks - Can the new CEO save the day?

Investors in panic mode as Crompton Greaves' stock price tanks - Can the new CEO save the day?

by 5paisa Research Team Last Updated: Apr 25, 2023 - 12:22 pm 718 Views
Listen icon

CEO succession is a pivotal moment in the life of any company. If you doubt the importance of this event, let me provide you with a real-life example that will resonate with avid cricket fans. 

Do you recall when the IPL franchise of Chennai Super Kings transferred the captain hat from MS Dhoni to Ravindra Jadeja? Although Jadeja is a quality player with a skyrocketing arm and the ability to hit the stumps, the team suffered. Mid-way through the season, Dhoni returned as captain. This exemplifies that leadership quality is not everyone's cup of tea. 

Why the panic? 

A similar panic was witnessed in the stock of Crompton Greaves Consumer Electricals Ltd as market participants showed little excitement about the announcement of the newly appointed CEO. This was evident in the stock's sharp decline of 14% on an intraday basis, hitting a 52-week low at Rs 252.35 apiece. It recorded its sharpest single-day decline in over three years since the latter part of March 2020. 

Interestingly, the fall was accompanied by robust volume, with the volume recorded so far for the day on NSE being about 208 lakh shares. This is significantly higher than the 10 and 20-day average volume of 35.37 lakh and 26.46 lakh shares, respectively. 

In a recent press release, the company mentioned that it has appointed Promeet Ghosh as CEO and MD, with effect from May 1, 2023, after Mathew Job resigned as CEO on April 23, 2023. 

Who is Promeet Ghosh? 

Here is a brief profile of Promeet Ghosh. He is a graduate in Engineering (Electrical & Electronics) from the National Institute of Technology, Trichy and an MBA from the Indian Institute of Management, Calcutta. He was an investment banker for two decades and has served as a director on boards of various companies across sectors. 

Technical analysis 

From a technical standpoint, the stock is trading below its key long-term and short-term moving averages, and they are trending downwards. The relative strength index stands at 24.25, indicating that the stock is oversold. 

In conclusion, CEO succession is a critical event that can impact a company's stock price significantly. It is important to understand the implications of such changes and monitor them closely, as they can have far-reaching consequences. 

Share Market Today


How do you rate this article?

or

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
What you must know about Accent Microcell IPO?

Accent Microcell Ltd is a 11 year old company, incorporated in the year 2012 to produce high-quality cellulose-based excipients. These excipients find application in the pharmaceutical, nutraceutical, food, cosmetic and other industries.

Electric Two-Wheeler Sales Surge in November: A Close Examination

In November, sales of electric two-wheelers witnessed impressive growth, totaling just over 91,000 units. This marks a nearly 20% increase compared to the same month last year and a 22% rise from October.

HUL Strategically Divides Beauty and Personal Care for Modern Beauty Brand Challenges

Hindustan Unilever Ltd (HUL) is making strategic moves to enhance its competitiveness in the beauty and personal care market. Starting April 1, the company will split its beauty and personal care division into two separate entities—beauty and wellbeing (B&W) and personal care (PC).