Since revenue contribution for VIP is skewed towards the first quarter of the financial year (~30% of revenue), disruption on the supply side may pose a risk to growth for FY21. We remain cautious on the near term outlook, amid headwinds faced by the luggage industry. Owing to its healthy balance sheet (D/E: 0.1x, NWC days: 85) and strong brand patronage among consumers, VIP’s business model has the inherent ability to tide over tough market conditions. Furthermore, owing to its strong manufacturing capacity (Bangladesh: soft luggage, India: hard luggage), it is well placed compared to its peers. Factoring in the performance of YTDFY20, we revise our earnings estimate downwards for FY20, FY21E. Therefore, we downgrade our recommendation from BUY to HOLD with a revised target price of | 505 (31.0x FY22E EPS, earlier target price: Rs 540).