Upgrade to BUY with a TP of Rs 480 (15x FY20E+ Rs 30/sh for biopharma). Improved performance in US was the key takeaway from Strides 1QFY19 result, although overall operational numbers remained weak. Revenue at Rs 6.6bn was flat YoY and QoQ. EBITDA margin was weak too at 12.2% v/s 13% in 4QFY18. The company reported loss of Rs 42mn in 1QFY19; sticky depreciation and interest cost to the tune of Rs 860mn eroded the profits.