Revenues grew 17%, lower than the Street expectation of 20% — implying that the Maggi ramp up is likely to be more gradual. However, the Street would want the company to grow its revenues at a more aggressive pace. At least six major brokerages have downgraded their recommendations on the stock citing the valuations are ahead of earnings.The stock had gained nearly 30% in the second quarter. However, a disappointing performance has made the Street reevaluate its bullish sentiment.Given the low base, the company's performance in the quarter was muted, especially when compared to the preceding March quarter. It was just 1.5% short of breaching its record high of Rs 7,499.

Source: Economic Times August 02, 2016 21:11 UTC