Maintain BUY with a SOTP-based TP of Rs 3,174 (17x Sept 20E Core EPS + cash + 40% discount for KTM stake) vs Rs 3,411 earlier. Higher contribution of entry level models (CT 100 and Platina in domestic 2W and Boxer in export) in the sales mix weighed on 2QFY19 margins for Bajaj Auto (BJAUT). Despite 25% volume growth, EBITDA rose only 3.5% YoY at Rs. 13.43bn at a disappointing 16.8% margin (vs est 17.3%). PAT grew by 4%YoY to Rs 11.52bn. Management expects ~150bps margin expansion in FY20 with full-year benefit of rupee depreciation.