We reiterate SELL as (1) Margin pressures are expected to sustain given weak demand outlook and lower utilization levels (as new capacities come onstream). We are building in margins at 25.8/25.6% over FY20/21E vs. 29.6% in FY19 (2) While the launch of entry variants will improve footfalls in the current backdrop, we expect a delayed recovery in demand due to the ongoing downturn (3) VECV is impacted by aggressive discounting by the incumbents. Key Risks: Any reduction in GST rates. We met the management of Eicher Motors. Launch of entry level Bullet and roll out of 250 small format stores are the new strategies to revive volume growth under the leadership of Mr. Dasari. In light of the upcoming BSVI regulations, the emission related cost hikes will impact consumer affordability. Thus, an entry variant in these circumstances will drive customer footfalls. The market response/profitability of the new variants needs to be monitored. We reduce our FY20/21 estimates by ~10% to factor in the sluggish demand and roll forward our estimates. Reiterate SELL with a TP of Rs 14,245 (at 19x Sep21 EPS) as lifestyle segment demand remains challenged