On the European business, Vredestein is witnessing a steady recovery, while Hungary Greenfeld stands as the biggest opportunity to ramp up sales and at the same tme save bulk of the costs. Although the company is incurring high capex for its new plant at AP, the net debt to equity according to us will not move above a comfortable 0.65-0.7x though the company may raise debt for the same given the cash rich positon of Apollo. On margins front, a benign outlook on RM costs may result in improvement in margins hereon. On valuaton front, the stock looks very atractve at 7.6x tmes FY 21E earnings post the recent fall in the stock price. Maintain our BUY rating on the stock with a target price of ₹ 265 (10x tmes FY 21E earnings).