Owing to the enhanced business mix, which will ensure the sustainability of future cash flows, we have increased our assigned earnings multiple from 20x to 22x, and maintain BUY with a TP of Rs 1,480 (22x Sep-19E). After the acquisition of Unichem Labs (UL) domestic portfolio, Torrent Pharma (TRP) will become the fifth largest player in the Rs 1.14tn Indian Pharma market (IMS data). Closed at a value of Rs 36bn, this deal will (1) Further strengthen TRPs position in CVS, CNS and GI categories owing to a complementary sub-therapy presence, (2) Add ~3,000 employees (including MRs) and provide access to an additional 2,100 stockists pan-India, (3) Give TRP an entry into the Indian OTC market, with the growing Unienzyme brand of UL.