We were among the first few with a reduce rating on the stock, and a Street-low TP of INR660.

Our sales and EBITDA margin estimates are below Street by 3.8% and 145bp, respectively, for 2009.

Lowering estimates on weaker industrial capex outlook Expect muted growth in the automation segment We are lowering our growth estimates by 3.0% in 2008 and 5.7% in 2009 driven by lower growth in its automation segment (lowered estimates by 2.8% and 9.5% in FY08 and FY09, respectively). We believe high interest rates and stringent credit norms will lead to a sluggish demand for its automation segment. We are seeing evidence of this as recent large order wins have a lower proportion (only ~30%) of automation segment sales.

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