Mahindra shares touch a two-year high on strong Q3 show on two key fronts

Concerns remain on the company's weakening position in the UV segment

Almost seven months after Mahindra and Mahindra announced a plan to embark on a stringent capital allocation exercise, it is almost at the fag end of the first phase of the strategy. The company’s earnings for the December quarter shows it has scored well on both fronts—paring losses from the international subsidiaries and to some extent, bringing focus back on its core businesses.

However, an increasing competition in its core UV space, where it has ceded significant ground to rivals, remains an area of concern for investors. “Valuations for Mahindra and Mahindra are still at a substantial discount to its