We downgrade to SELL and lower our PE multiple to 12x (14x earlier) to factor in the challenging demand environment. (1) The domestic CV sales cycle is expected to remain weak, with the pre-buy having a limited impact over 2HFY20 (2) While the company's expansion into new markets/segments is expected to contribute towards incremental volumes, the demand outlook in the US is softening as new order intake has been weak over the year. The export volumes will be increasingly at risk over FY21E. In 1QFY20, Ramkrishna Forgings EBITDA margin at 19% (-200bps YoY) fell to multi quarter low. We expect the domestic demand environment to remain weak. Also, the new order intake for Class 8 trucks remains muted in the US. Downgrade to SELL with a revised TP of Rs 380 (at 12x FY21 EPS, 14x earlier). We lower our earnings estimates by 29/20% for FY20/21 to factor in the above.