Teamlease is witnessing traction across BFSI, e-commerce and Manufacturing sectors. Portals like Schoolguru and Fresher's world are helping in talent acquisition. Macro tailwinds, such as (1) Labour reforms, (2) Focus on higher compliance, (3) Rising preference for organised staffing, and (4) Govt-driven skill development initiatives (NETAP) will drive ~20% CAGR in organised flexi-staffing. We like company's low risk business model (non outcome based), lower dependence on funding model, focus on scaling Core+NETAP associates, scope for margin expansion through productivity benefits and better business mix. The stock trades at a premium valuation of 35x FY21E, which will remain considering the structural growth story, focus on organic growth and domestic exposure. We expect revenue/EBITDA/PAT to grow at 20/26/24% CAGR over FY19-21E. Risks include macro slowdown, drop in mark-up and competition from unorganised players. We maintain BUY on Teamlease based on in-line 4QFY19. Core staffing segment (~91% of rev) growth drivers are on track and margin performance is encouraging. Our TP of Rs 3,500 is based on 40x FY21E EPS.