We downgraded CDH recently after the key formulations facility at Moraiya, Gujarat, received several critical observations related to contamination post USFDA's inspection. Since this facility contributes 40-45% to US revenues (in our estimates) and has ~30% of the pending US filings, we believe a warning letter (WL) or import alert would be detrimental for CDH (~40% downside). The US remains CDH's key performer as India and other segments have been disappointing consistently. Any slowdown in the US could severely hurt earnings, especially since gLialda, gTamiflu and gAsacol HD contribute 29% to US revenues (in FY19). In case of any adversities, the elevated debt (0.7x FY19E Net D/E) could prove to be fatal for earnings. We maintain NEU on CDH following a miss on our estimates. We have downsized our estimates to adjust for a weaker outlook on profitability over FY20-21E. Revised TP of Rs 285 (18x FY21E EPS) provides a limited upside.