Havells has gained market share in most of its categories even during a challenging environment. We believe co's performance will bounce back with a recovery in macros. Lloyd will remain a WIP in FY20 with a recovery expected from summer-20. Amidst slowdown, management plans to tighten the belt on non-essential costs. We expect EBITDA margins to recover faster than volume growth. We see enough levers for margins to mean revert in the coming quarters. We recently upgraded (in 2Q preview) Havells to BUY (at CMP Rs 656) as risk/reward was favorable. Stock is down by 16% in the last 6-months, we believe weak performance is largely priced-in. Havells reported another let down. Co has been challenged by slowdown (real estate, industrial and govt projects) and impact from rejigging Lloyds strategy. We believe earnings growth trajectory has bottomed out and expect partial recovery in 2HFY20 and full recovery from 1QFY21 onwards. We cut our EPS by 9/4/4% in FY20/21/22 and value Havells at 36x on Sep-21E EPS, with of TP of Rs 739. Maintain BUY.