While our thesis of margin contraction is playing out, we remain generous with a ~13% rev CAGR and margins largely flat at 38% in our estimates. These result in 16% earnings CAGR. ROEs are at ~20%. DIVI is trading at 31/27x FY20/21E EPS, a ~50% premium to peer-avg and ~40% above historical avg, much of which corresponds to periods of 40% plus return ratios. Even so, valuations have rarely crossed 25x one-year forward P/E. With return ratios in a significantly lower range, current valuations look unsustainable. Maintain SELL with a TP of Rs 1,445 (22x FY21E EPS). DIVI may be a good business, but the price is clearly wrong. We maintain SELL on DIVI, following a significant drop in profitability. Our thesis is playing out, even as our estimates remain unchanged. At 22x FY21E EPS, our TP stays at Rs 1,445/sh (more than 15% downside).