Bullish on Mahindra & Mahindra: Shashank Khade, Kotak Mahindra AMC

In a chat with ET Now, Shashank Khade, Senior VP, Kotak Mahindra AMC, shares his views on Mahindra & Mahindra Limited.

ET Now: What has done the trick for Mahindra & Mahindra because if I map the dynamics of the entire four-wheeler industry then there is intense competition. So why is M&M outperforming?

Shashank Khade: The outperformance of certain auto stocks are clearly linked to new product launches and how those product launches are faired in the market.

For M&M, XUV 500 seems to have done the trick which has created a segment where people are now trying to follow and get into that price segment and that is the reason why SUV segment is doing extremely well while the tractor segment has actually been quite disappointing.

So, had the UV segment not come alive for M&M the stock would have not really seen such sort of performance in the last one year. I think, M&M has got the strategy right and that is the reason why you are seeing the stock performing quite well.

Hence, it is the UV segment and the leadership which has actually created a segment in that particular vehicle segment giving them a premium for valuation.