The stock currently trades at 10.5x FY20 e EPS of Rs 24.48 and 7.8x FY21e EPS of Rs 33.08. Gloominess over the state of consumer spending trends in India has cast shadow on demand recovery in several industries - textiles, consumer durables, automobiles, to name a few. Yet softening interest rates coupled with recently announced corporate tax cut is expected to revive the private investment cycle (though not sturdily) over the next few quarters. The automobile industry is also expected to turn the corner anytime soon helping the fortunes of auto component suppliers who have been ravaged by demand slowdown. LGB would be no exception for its volumes are estimated to rise by some 10% next fiscal on higher margins. Given modest valuation (compared to historic trends) we advise buy the stock at current levels with revised target of Rs 397 (previous target: Rs 544) based on 12x FY21e earnings.