Eureka Forbes jumps 11 per cent on Pratik Pota's appointment as new CEO and MD; do you think he can lead a turnaround?

Pratik significantly accelerated the growth of Domino's franchise and expanded EBITDA margins to record highs

Water purifier Aquaguard, a common name in the Indian household, is owned by Eureka Forbes. It is the country’s leading health & hygiene leader with brands like Aquaguard & Forbes under its belt.   

With over four decades in business, it is today a multi-product, multi-channel organisation. A former part of Shapoorji Pallonji Group and now, an Advent International portfolio company, Eureka Forbes' product portfolio encompasses water purification, vacuum cleaning, air purification, and home security solutions.  

The stock of Eureka Forbes is jumping out of joy as it has skyrocketed over 11 per cent and crossed its important psychological mark of Rs 400. So, what’s the reason?   

The reason is that Eureka Forbes has announced Pratik Pota as its Managing Director & CEO. He will lead the management team to continue scaling the business, solidify Eureka Forbes' market leadership position, and deliver innovative products for a growing customer base. Pratik will join Eureka Forbes on August 16, 2022.  

Until recently, Pratik was CEO at Jubilant FoodWorks Ltd (JFL), where he led the business to a comprehensive turnaround and transformation. Whilst at JFL, Pratik significantly accelerated the growth of Domino's franchise and expanded EBITDA margins to record highs. Under his leadership, JFL's brand portfolio expanded and the company entered new markets, including Bangladesh & Turkey. Pratik also drove a major digital transformation at JFL that helped Domino's emerge as India's largest D2C brand. Propelled by these initiatives, JFL's market capitalisation grew tenfold during Pratik's tenure.   

Before JFL, Pratik held leadership roles in PepsiCo, Airtel, and Hindustan Unilever Ltd in a career spanning more than 30 years.   

Management pedigree matters a lot when investors make an investment decision. It also becomes significant in a bear market condition because businesses managed by managers of reasonable integrity would never entertain any direct or indirect operator dealings and will always let the stock price find its own level based on the collective wisdom of the market participants.   

So, what do you think, will Pratik turn out to be the knight in the shining armour for Eureka Forbes? Share your view in comments.