Reiterate BUY on Subros given (1) Consistent increase in market share in PV-ACs (46%, +4% from FY19) despite a sluggish environment (2) Diversification into newer segments including home AC components (3) Deleveraging of balance sheet (Gross debt of Rs 1.9bn in 1HFY20 vs. Rs 3.2bn in FY18) and (4) Its strategic partnership with Denso will enable the transition to next generation products. 2QFY20 revenues (-12% YoY) were impacted by weak demand environment. Subros continues to gain market share in pass car ACs (currently at 46%) and is well positioned for any pick up in industry demand over FY21/22. We are lowering our estimates by ~5% to factor in the 2Q results. Maintain BUY with a revised TP of Rs 270 (at 17x Sep-21 EPS).