Downgrade to NEUTRAL as (1) An expected demand recovery in 2H is delayed (2) Valuations are not adequately factoring in the current downturn (3) We would recommend buying on dips as Maruti enjoys a strong franchise with a dominant market share of ~50%. Also, Maruti is well prepared for the upcoming transition to BSVI due to its gasoline led portfolio. After weak 1Q operational performance, we downgrade the stock to NEUTRAL. The EBITDA margin declined 450/15bps YoY/QoQ to 10.4%. We are lowering our estimates by 6-7% for FY20-21E with a revised TP of Rs 5,820 at 20x FY21 EPS (22x earlier). An expected 2H demand recovery is delayed as the macros remain challenged and the restricted availability of finance (NBFC related) is impacting footfalls.