We are NEUTRAL as (1) AL has a well capitalized balance sheet and is better prepared to withstand the current downturn. The OEM has lowered capex spends to manage cash flows (2) While any introduction of a scrappage scheme will aid sales in FY21, the expected commissioning of the DFC will impact demand over the medium term. Ashok Leyland reported yet another weak quarter as EBITDA margin declined to 5.6% (-460/-20bps YoY/QoQ). The industry awaits the announcement of a scrappage scheme, which will aid demand in FY21. We reiterate NEUTRAL with a TP of Rs 75 (13x on Dec-21 EPS).