Angel Broking‘s CIO, Rajen Shah said his bet in the auto space would be certainly Mahindra and Mahindra (M&M). The stock could go beyond Rs 1,100, feels Shah.
Rajen Shah, CIO of Angel Broking told CNBC-TV18, “For the past few quarters, we have been talking about M&M on your channel and it has done exceptionally well.”
He further said, “Around these levels, Tata Motors is trading at about 10 times the current year earnings, so it certainly looks cheap.”
“But Mahindra has run up a lot, could take a breather. But on June 5, they are launching this Verito Vibe, which is basically going to compete against Swift and they are going to take on Swift head-on. And whatever feedback I have got from my sources – they say that it is going to be a very sporty and a very good-looking model,” Shah added.
”So, they are going to take Swift, Polo and all this in this segment. Let us see how the launch is and how the product is and then probably we could see Mahindra go beyond Rs 1,100.”
”My bet in the auto space would be certainly Mahindra even at this point of time. It could take a breather for a while,” Rajen Shah said.