While the Indian utility vehicles maker Mahindra & Mahindra is very bullish on the success of its recently bagged Ssangyong in the long-term, but the investors are afraid of the kind of investments that the company will need to make in order to gain a foothold in the Korean market.

There is no denying the fact that Mahindra has been on a diversification spree in the past two years in the automotive sector, through acquisitions and joint ventures, entering the heavy, medium and small trucks segment but analysts are echoing views that the multiple moves at the same time will be a drain on Mahindra’s cash flows and the stock could enter a phase of underperformance in the next 18 to 24 months.

Jatin Chawla, sector analyst at India Infoline said that more than the Ssangyong buy; the foray of the company into the heavy commercial vehicles sector is affecting the stock of the company.

Apart from the recently bagged Ssangyong, the company has acquired companies matching the likes of Reva, Kinetic etc. the company is very sure of the success that it will achieve in the coming years.