Despite a steep increase in cost on account of the wage hike, we expect adjusted EBITDA CAGR of 15 % to INR197b over FY17-19. Growth in EBITDA is driven by annual volume growth of 7 %, operating leverage and other operating income. EPS is expected to increase at a CAGR of 18 % to INR20.7/share over FY17-19.At 90 % payout, the dividend yield will be 6 % at CMP. Concerns around grade slippage, e-auction price decline, deceleration in volume growth and wage hikes are now behind. Volume growth is accelerating,which will also drive operating leverage gains. Various cost initiatives like closing of underground mines, VRS and overtime compensation can drive upside to our estimates. The stock trades attractive at 6.8x FY19E EV/EBITDA. The TP is INR335/share.based on 8x FY19E EV/EBITDA. Buy.