On the back of the regulatory relief, we have increased our EPS estimates for FY18E/FY19E/FY20E by ~9%/14%/14%. We also upgrade the earnings multiple from 16x previously, to 22x, in-line with DIVI's historical 1-year forward multiple. However, with the recent run-up in the stock price, there is limited up-side. Maintain NEUTRAL, with a revised TP of Rs 1,100 (22x Sep-19E). The US FDA has lifted the 66-40 import alert on Divis Labs (DIVI) crucial Unit 2 facility in Vizag. DIVI has managed this within 8 months, a record for Indian players. It has traditionally taken peers 2 to 3 years to resolve issues of a similar scale at US FDA-approved facilities, hence this news is extremely positive, and speaks volumes of managements ability and execution.