Jubilant Food shares hit 52-week low! Should you buy now?

Shares of Jubilant Foodworks Ltd (JBL), which operates fast-food chains Domino's Pizza and Dunkin' Donuts, tanked over 15 per cent to hit a new 52-week low of Rs 2,444 on BSE after the company announced on Friday that its Board of Directors had accepted the resignation of CEO and Wholetime Director Pratik Rashmikant Pota.
 
The company informed that Pota wishes to pursue opportunities outside the firm. He will continue to serve in the role till Wednesday, June 15, 2022.
 
The stock opened 6 per cent lower at Rs 2700 against the previous close of Rs 2864.10. Market cap of the company slipped to Rs 32,566 crore. The shares stand lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
 
"We wish to inform you that the Board of Directors of the company in their meeting held today i.e. Friday, March 11, 2022, accepted the resignation of Mr. Pratik Rashmikant Pota as the CEO and Wholetime Director of the company as he wishes to pursue opportunities outside Jubilant FoodWorks Limited," wrote Jubilant FoodWorks in official communication.
 
"The Board places on record its sincere appreciation for the outstanding contribution made by Mr. Pota during his tenure with the Company and wishes him the very best in his future endeavors," noted the firm. It added that its Board of Directors has also initiated the process of identifying Pota's successor.
 
Brokerage firm Motilal Oswal noted that the resignation of the CEO comes as a negative surprise and it believes the exit of Mr. Pota could have an adverse short-term impact on the stock, considering the phenomenal efforts 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 added.
 
"Changes to our model have led to a 5.4/6.5 per cent cut in our FY23E/FY24E EPS, respectively, as we factor in the effects of slowing delivery sales growth, increased commodity costs, and higher fuel inflation," it said.
 
Morgan Stanley said that the company is still well-positioned to play a long-term growth story in organised food but sudden leadership change threatens the near-term outlook.
 
It has downgraded the stock to 'underweight' from 'overweight' with a target price of Rs 2,250.
 
Macquarie has also downgraded the stock to 'underperform' and cut the target to Rs 2,150 from Rs 3,550 per share.