Of the recent resignations tendered by five senior executives at Nykaa, some departures were based on performance appraisal and not entirely voluntary. "Management indicated that the overall departure is small in the context of company size," noted Jefferies in a report.
The firm has maintained its target price at Rs 200, which indicates a 45-percent upside from the current level. At 1:30 pm, the stock was quoting at Rs 134.30 on the NSE, lower by 2.43 percent.
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As per reports, Manoj Gandhi (Chief Commercial Operations Officer), Gopal Asthana (Chief Business Officer of fashion division), Vikas Gupta (Chief Executive Officer of wholesale business), and two vice presidents of the fashion business have resigned.
These resignations follow the departures of Arvind Agarwal in November 2022, who was the chief financial officer.
Nykaa management believes this is 'normal' level of attrition in a fast-paced, growth-focused, consumer tech organisation. "The move should not signal a change in Nykaa's stance on its businesses, including fashion, eB2B, as well as own brands," the management told Jefferies.
We saw a similar trend in Zomato late last year when four top-level executives including co-founder Mohit Gupta resigned in the span of two months.
“Company building is not just about the journey of the business. It is also so much about its people’s personal journeys. Both these journeys take their own twists and turns. And sometimes, for some people, the distance between their form (their mindset and skillset) and the company’s context becomes such that it is necessary to take a break from each other," Zomato Chief Executive Officer Deepinder Goyal had said.
Jefferies' analysts were not too concerned about the exits in Zomato, either. “In our interactions, we find Deepinder in control of the business and hence do not see a big disruption or a major change in strategy,” they said.
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