MSIL’s share of diesel now stands at just 23% (lower than the industry mix). On margins front, higher local content, reducton in discounts, price hike and operatng leverage at Gujarat plant will have a positve impact. Synergies from the collaboraton with Toyota in the exports markets (Africa) will be felt over the medium term. In line with subdued Q4 numbers, we have slightly reduced our volume and margins estmates. Maintain BUY with a reduced target of Rs. 7,808.