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    As buyers drive in for more SUVs and M&M makes more, stock to rev up

    The stock is trading at 21 times one year forward earnings, a 16% premium to its long-term average. The premium may sustain with a strengthening SUV franchise, improving profitability and continued focus on capital allocation.

    Synopsis

    The company's move to increase capacity would lend more credence to investors that it is able to bring down the waiting period that has crossed more than a year for certain variants of the top-selling models, thereby lowering the risk of cancellation as supply pressure is easing for the competition.

    ET Intelligence Group: Mahindra & Mahindra's stock outperformance may sustain on improving volume visibility as the company laid out a plan to nearly double its automotive segment installed capacity in the medium term which would help strengthen its market share in the sport utility vehicle (SUV) segment.The company's move to increase capacity would lend more credence to investors that it is able to bring down the waiting period that has crossed
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