Shoppers Stop Shares Plunge 11% After CEO Resigns Citing Personal Reasons

Shares of Shoppers Stop Ltd. fell the most in over 32 months on Friday after its Chief Executive Officer, Venu Nair, resigned effective Aug. 31 due to personal reasons.

Consequently, Homestop chief Kavindra Mishra has been promoted as executive director and CEO for three years, effective Sept. 1, 2023.

Shares of the company dropped 11.48%, the most since Dec. 24, 2020, before paring loss to trade 10.06% lower at 2:10 p.m. This compares to a 0.48% decline in the NSE Nifty 50.

The stock has risen 2.6% on a year-to-date basis. Total traded volume stood at 25 times its 30-day average. The relative strength index was at 29, implying that the stock may be oversold.

Of the 11 analysts tracking the company, six maintain a 'buy' rating, one recommends a 'hold' and four suggest to 'sell' the stock, as per Bloomberg data. The average calculated from the 12-month price target given by analysts implies a potential upside of 14.5%.