Inherent strengths (strong liability franchise, limited exposure to stressed sectors and a calibrated approach to growth) position KMB to deliver sustainably, even in times of economic uncertainty. However, a limited upside forces us to DOWNGRADE to NEUTRAL with a TP of Rs 1,531 (4.25x Jun-21E core ABV of Rs 283 + Rs 328 for subs). The issue on promoter holding with the regulator remains unresolved (next hearing in CY20). KMB reported an in line 1Q, with higher NIMs, slower growth and stable asset quality. With limited upside in sight, we DOWNGRADE to NEUTRAL with a TP of Rs 1,531 (4.25x Jun-21E core ABV of Rs 283 + Rs 328 for subs).