Exit Nestle India, says Shahina Mukadam

Market Expert, Shahina Mukadam told CNBC-TV18, "Nestle India has corrected a lot over the last one week and it has broken very important support level although the numbers were good, there was 8 percent growth in revenue as well as margins have improved. Considering Maggi problem, it accounts for a chunk of the revenues of the company and there are already talks of it been withdrawn from certain markets and testing going on across market."

"If it sees even a temporary withdrawal for a particular period of time then not only will the revenue growth be affected, the brand has anyway taken a hit as well as the margins will again slip. So to an extent I believe the investors should get out because the stock has broken its 20 day moving average (DMA) which was around Rs 6,250. I believe this stock can correct further, go down to closer to Rs 5,300-5,500 level also," she added.

"One should exit the stock as of now and then look at reentering at around Rs 5,000. Valuation is expensive around 50-55 times multiple as of now, so it could go down to one year low, one year low was Rs 4,750, so it can correct to those levels. There are problems in the stock and it is risky to hold," she said.

Disclosure: Analyst doesn’t hold the above stock.