Maintain BUY as (1) Hero has successfully defended market share in the 2W segment in the current downturn. (2) The premium launches will further enhance its addressable customer base. The market share shift away from scooters will benefit given its motorbike dominant portfolio. (3) The stock is trading at attractive valuations of 13.7x on FY20E estimates and offers a dividend yield of ~3.9%. The co has healthy return ratios with an ROE of 24%. 1QFY20 operating performance was a beat as margins at 14.4% were up +90bps QoQ on improved cost management. Amidst an uncertain environment, Hero is addressing white spaces in its portfolio and upgrading its existing products. Re-iterate BUY, with a TP of Rs 2,875 (16x FY21 EPS).