Bullish on Mahindra & Mahindra within auto space: Dipen Sheth, HDFC Securities

In an chat with ET Now, Dipen Sheth, Head-Institutional Research, HDFC Securities, shares his views on auto space.

ET Now: How did you read into the trends coming in from the monthly numbers from autos?

Dipen Sheth: Well, you had a volume crack at Bajaj Auto. The Maruti Suzuki numbers were disappointing, but one thing that stood out in the auto was the huge uptick in Mahindra’s numbers on the tractor space.

Mahindra is a remarkable company and the core business works at very high return ratios, if you strip off their investments. With the prospect of a good monsoon, a company like Mahindra stands to gain.

We are anticipating a little bit of an easing off from their passenger vehicle or CV business as well this year. So, it is a very interesting bunch of businesses and largely protected because of the diversified nature of the business mix.