Can Fin Homes share price tumbled on Tuesday, dropping as much as 8.1 percent, after the managing director and chief executive officer of the company Girish Kousgi resigned citing personal reasons. Can Fin Homes stock price was trading 3.5 percent lower at Rs 569 on BSE at 10:25 am.
Global brokerage Jefferies has a 'buy' rating on Can Fin Homes with a target price of Rs 730. The brokerage house notes that Kousgi's resignation is a setback for the company and uncertainty around management transition would be an overhang near term.
The housing finance company had delivered a healthy balance of growth and good asset quality during his tenure. According to Jefferies, an external CEO from the industry may be viewed more favourably by investors.
Kousgi's full term was till September 2024. The company has said that he will be discharged from his duties till the date of his relieving, though no definite timeline given has been given.
Earlier, on May 6, Canara bank had told CNBC-TV18 that there were corporate governance issues in Can Fin Homes. "There were accounts which were identified as fraud." On May 2, Can Fin homes said in a conversation with CNBC-TV18 that the MD and CEO intend to continue until the end of his term.
The company also said that an NHB audit had been conducted, but nothing had come up. The stock fell 7.5 percent in the previous session.
First Published: Sept 20, 2022 10:36 AM IST
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