The Infosys stock fell in early trade today after its chief financial officer MD Ranganath resigned last week after holding several leadership positions during a tenure of over 17 years with the company.
The stock fell 58 points or over 4 percent to touch an intra day low of 1,373.55 level on the BSE. The stock has gained 51.87% during the last one year and 34.89% since the beginning of this year. At 10:53 am, the stock was trading 2.54% or 36 points lower at 1395 level on BSE. The stock was the top loser on Sensex, Nifty.
The stock opened at a loss of 3% in trade today. The stock has fallen after two days of consecutive gains. The stock closed 3.22% or 46 points lower at 1385 level on the BSE.
Infosys said Ranganath will continue in his current position as chief financial officer till November 16, 2018. The Board will immediately commence the search for the next CFO.
Ranganath had taken over the said role after the then CFO Rajiv Bansal had quit in 2015.
Interestingly, exactly one year back on August 18, 2017, Infosys CEO Vishal Sikka quit as CEO of the Bengaluru-based firm.
Morgan Stanley in a note said, "Concerns around exits from the senior management team will remain an overhang," and downgraded the stock to 'equal-weight' from 'overweight'. It set the target price of the stock at 1450 level.
Citigroup has assigned a neutral rating to the stock with price target of Rs 1,315. "In the short term, the market could react negatively, particularly given strong performance YTD. However, in the medium/long-term, we expect stock performance will depend on growth."
25 of 35 brokerages rate the stock "buy" or higher, eight "hold" and three "sell" or lower; their median price target is Rs 1,411, according to Reuters.