Do not buy MM, says Ajay Srivastava

Nov 07, 2013, 12.28 PM IST

Ajay Srivastava, CEO at Dimensions Consulting suggests not to buy Mahindra and Mahindra (M&M).

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Do not buy M&M, says Ajay Srivastava

Ajay Srivastava, CEO at Dimensions Consulting suggests not to buy Mahindra and Mahindra (M&M).

Like this story, share it with millions of investors on M3

Do not buy M&M, says Ajay Srivastava

Ajay Srivastava, CEO at Dimensions Consulting suggests not to buy Mahindra and Mahindra (M&M).

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Ajay Srivastava, CEO at Dimensions Consulting told CNBC-TV18, " Rallis India has already gone up quite a bit but I still think it has got way to go given the valuations. I don't have to buy on Escorts at all. It is too volatile. Promoter has been an issue for more than 20 years plus the liquidity of the stock is very poor and you cannot exit the stock when you want to. So I would certainly believe that Escorts should give good earnings but is a bad investment decision."

He further added, " Mahindra and Mahindra (M&M) sits on the borderline because tractors are doing well but its three other components are now struggling. The LCV is struggling, the car segment is struggling and the two-wheeler is also struggling. The aero investment, I don't know how far this has gone, so unfortunately for M&M, the three lemons versus one star is going to kind of counter balance it. So one cannot take a tractor company and invest in it because you don't have them as a standalone farm equipment kind of company barring Escorts where we have seen management issues and liquidity issues. So we are not recommending that anyone goes and buys that stock irrespective of what the financial performance comes out."

Rokok Kanker