Maggi row hits Nestle's goodwill; let dust settle down before taking a call on stock : Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking, shares whether investors should add fresh exposure to Nestle India stock following a sharp slump.

ET Now: What is your take on Nestle India? Is it a good time to buy into a franchise like Nestle or should it be avoided because of the expensive valuations? We do not know which way this Maggi story will move. What is your take on it?

Mayuresh Joshi: The price at which Nestle India was trading a week back, was simply too demanding. Let us wait for dust to settle down. One should see what the stand the Centre is going to take on the controversy surrounding its brand Maggi. There have been states which have banned Maggi.

The two-minute noodles pack has gone off the shelves. There has been a huge impediment in terms of their brand value. Hence, Nestle's goodwill has badly been hit over the past few days. In that sense, one must let the dust settles down.

Let us wait for what happens with the regulatory announcements, what happens after 15 days. It will help us get a sense of what impact Delhi government’s ban on Maggi will have after 15 days and what kind of change in estimates we can expect on the topline for the next few quarters. Thus