Downgrade to SELL with a TP of Rs 1,345 (22x Sep-20E EPS). Divis Labs (DIVI) reported a blowout quarter, benefitting from a favorable base, currency impact, one time API opportunities and a belated surge of orders post import alert clearance. Revenues grew up 44/29% YoY/QoQ to Rs 12.85bn, EBITDA margin at 40% expanded 887bps, while PAT jumped 92% YoY to Rs 3.98bn. Margin expansion was led by currency benefits and oplev.