With buoyant 4QFY19 numbers, we remain constructive on Laurus and believe it is best-positioned to successfully transition into a formulations and CRAMS player. This will lead to improved profitability in the coming years, driven by better business mix and operating/financial leverage. Laurus entered the US$ 1.8bn ARV formulations market in FY19. In our view, it can capture at least 15% market share (in TLE/TEE/TLD), supported by one of the largest ARV API capacities. With formulations revenues/EBITDA at US$ 85/25mn in FY21E, earnings can triple over FY19-21E (on a soft base). We also expect a couple of big-ticket formulations launches in the US market by FY21, which can further boost profitability. We strongly believe the stock is ripe for healthy returns. We maintain a BUY on Laurus following a bumper (yet inline) 4QFY19. Our TP is unchanged at Rs 535/sh (18x FY21E EPS). The delivery has begun.