Our in-depth analysis of the profitability curves of the IP partnerships that HCL has invested in over the last 6 quarters indicates that while their revenue impact could be low (c.3% over FY18-20), their superior profitability provides HCL with an incremental margin lever (up to c.50bps EBIT margin leverage in FY19-20). We believe the market has ignored this given a limited understanding of the economics of these partnerships. We see value in the stock after the c.6% correction since 2QFY18 results, ostensibly on a weak near-term outlook for the infrastructure services (IMS) business. We believe the slowdown in IMS is transient and at 12.6x FY19F EPS (9% discount to its 3-year median PER), we find the risk-reward attractive....