We maintain BUY with a TP of Rs 2,150, giving 40x multiple to normalised Sep-19 EPS (excluding 80JJAA benefit), and again adding the NPV (Rs 38/share) of the tax benefits that will be availed of over the next three years. TeamLease reported a good set of numbers in 2QFY18, with in-line revenue and margin beat (+1.7% vs our estimate of 1.6%). Revenue stood at Rs 8.76bn, up 2.7% QoQ vs est. of Rs 8.85bn. Growth was led by core staffing (+2.3% QoQ, 95.4% of rev) and IT staffing (+9.0% QoQ, 3.1% of rev). The core staffing margin came in at 1.6%, up 10bps QoQ, while the IT staffing margin expanded 425bps QoQ to 15.3%. Growth in the higher-margin IT staffing business, rising associate/core ratio (+2.9% QoQ), and higher mark-ups (+5.5% YoY) are driving margin expansion.