Yet, the ABFRL stock is down 53% (decline much higher than other retailers) from its peak in Feb20, which could largely be pinned on its high leverage. Our broad workings indicate that at revenue of INR60b, ABFRL would reach EBITDA break-even on the back of 50% gross margin and 25% reduction in existing operating cost of IN40b in FY21. Our expectation of ~20-25% operating cost reduction is achievable as (a) rental cost negotiations with landlords are on with good success, especially as some high street properties have already granted rental waivers for the lockdown period and lowered rent for FY21, (b) employee cost could be reduced across the front end, factory and head office with savings from variable pay, repositioning of employees to other verticals and some natural churn, (c) SG&A; may see >25% savings coming from multiple discretionary and non-core variable costs, including traveling, training, etc.