Maintain BUY with a reduced TP of Rs 3350(16x Dec-20E EPS) Hero Motocorps (HMCL) 3QFY19 numbers were broadly in line with estimates. Net revenue at Rs 78.6bn(+7.7% YoY) was led by 5.3% volume growth. EBITDA fell 5% YoY to Rs 11bn as margins came inline with estimates at 14% (-180bps YoY/112 bps QoQ). Margins were impacted due to input cost pressures. APAT stood at Rs. 7.7bn (-4%) YoY. We expect 4Q retails to be higher, led by marriage season demand (there are significantly more auspicious marriage days in 2019 as compared to 2018) and recovery in rural markets (aided by the budget stimulus.). Thus, we expect sales to grow in high single digit in FY20.