Lower raw material prices and higher export contribution to enhance margins: In the last six years, despite volatile raw material prices, Garware-Wall Ropes (GWRL) has maintained its operating margin in the range of 10-11%. The companys key raw materials are crude based; the recent decline in crude prices has resultantly had a favorable impact on the companys margins. Crude prices have declined by ~37% on an YTD basis and by ~40% on a yoy basis. The companys EBITDA margins, as a result, expanded by 145bp yoy in 1HFY2016. Crude prices are likely to continue to remain soft and thereby translate into lower raw material (high density polyethylene, polyethylene, nylon etc) prices for the company, which in turn will result in improvement in the companys EBITDA margin going forward. Moreover, higher contribution of exports as well as better product mix augurs well for the company. Debt repayment and improving return ratios: The company is continuously generating higher cash flows, which has resulted in debt reduction and improvement in ROE. The company has been consistently repaying debt over the past four years, resulting in debt having come down from ~Rs140cr in FY2012 to Rs45cr in FY2015. Going forward, we believe the company...