Attractive Valuation to Own Strong Company; Upgrade to BUY Hero MotoCorp (HMCL) has delivered better-than-expected performance in 1QFY20 with its operating margin coming in at 14.4% vs. our estimate of 13.6%, declined by 121bps YoY (+86bps QoQ). Its revenue fell by 9% YoY (+2% QoQ) to Rs80.3bn (vs. our estimate Rs81.7bn), while EBIDTA decreased by 16% YoY (+8% QoQ) to Rs11.6bn due to higher other expenses. EBIDTA margin contracted by 121bps YoY on account of limited ability to pass on higher input cost amid intensified competition. Its ASP improved by 4% YoY due to price hike for implementation of safety norms. HMCL's adjusted PAT declined by 14% YoY (+8% QoQ) to Rs7.86bn surpassing...