Rajen Shah positive on Mahindra and Mahindra

Rajen Shah, CIO at Angel Broking told CNBC-TV18, "I am positive on Mahindra and Mahindra (M&M). Auto was disappointing because of disappointing sales numbers of utility vehicles and passenger cars. I think this company has got a great future. Tractor is doing very well. Its EBITDA has improved strongly in the tractor business."

"Other businesses like the commercial vehicle business it is going to get very aggressive in this segment and the motorcycle business - just for the knowledge October 2012, they had sold about 11,000 motorcycles and in October of this year they have sold 29,000. In the motorcycle business they are getting very aggressive," he added. "They have plans to launch about 10 new models in the two wheeler segment over the next 18 months. This company has got a great future. The South Korean subsidiary has turned around. This year they should report about Rs 60 kind of earnings at about Rs 885-900. At 15 PE multiple the stock certainly deserves a place in the portfolio. We have a target of Rs 1,200 for M&M over the next 12-18 months," he said.