At CMP, the stock is trading at 18.6x FY18, 11.6x FY19E and 9.2x FY20E EPS, still 50% cheaper to industry peers. Maintain BUY with a TP of Rs 140 (12x Sep'20E EPS). Continuing the momentum post sequential recovery in the previous quarter, Granules (GRAN) reported strong double-digit growth with revenue at Rs 5.8bn (+48/28% YoY/QoQ) in 2QFY19. This was driven by the API and FDF segments, and three product launches in the US market (gMethergine, Methocarbamol and Metformin XR). EBITDA came in at Rs 1bn with margin at 17.3% (down 230bps YoY/ up 130bps QoQ).