SIL is positive on strong growth in plastic piping segment in the longer run based on demand expected from government’s initiatives towards boosting affordable housing, focus on sanitation and providing piped water to all. We believe that SIL’s near term volume across most of the product segments is expected to be impacted by Covid-19 led restrictions. In our view, plastic piping business which contributes 63% to revenue (in FY20), is expected to face challenges in FY21E due to impact of Covid-19 on retail sales of pipes in plumbing segment and slowdown in the real estate sector. However the demand on rural and agriculture side is expected to remain strong based on strong agri season last year, normal monsoon forecast for 2020 and lesser impact of Covid19 in rural areas. This may also positively impact demand on packaging segment. We also believe that sustaining high margins of Q4FY20 would be difficult in FY21E due to change in the product mix (on expectation of increased contribution from agri side) and absence of high discounts on raw material procurement. We have factored in the impact of Covid-19 on company’s business (particularly in H1FY21) in our estimates. We have cut our earnings estimates for FY21E/22E by 8.5%/4.3%, respectively. The stock is presently trading at PE of 31.3x/24.7x on FY21E/22E revised EPS of Rs 31.3/Rs 39.6 (vs Rs 34.2/Rs 41.4 earlier), respectively. We maintain ADD rating on the stock with revised target price of Rs 1110 (vs Rs 1160), valuing the stock at 28x on FY22E revised earnings. Key risk to our estimates and rating are prolong impact of Covid-19 led restrictions, risk of slowdown in consumer discretionary spending, slowdown in real estate, etc.