27 February 2020 MACAs 4QCY19 operating performance was weak across operating parameters owing to a sharp fall in EU business revenue. We downgrade our CY20/21 EPS estimate by ~8%/3% to factor in the weakness in the EU business. Maintain with a target price of ~INR191 (~12x Dec21 EPS) due to cheap valuations. India business grew at ~6% driven by consolidation of AEL. substantially higher tax provisioning (both in India and EU) resulted in ~87% For CY19, revenue/EBITDA/adj. revenue grew ~6% driven by consolidation of AEL (organic decline of ~12%). India business EBITDA margin contracted ~100bp YoY to ~11.7%, translating into a PBT decline of ~22% to ~INR578. revenue declined ~27% YoY in INR terms and ~23% in EUR terms, impacted by de-growth in the commercial and off-road vehicle markets. EU EBITDA margin shrank ~150bp YoY to 12.1%, but was up ~100bp sequentially driven by restructuring initiatives.