V-Guard is coming out of a difficult phase (floods, volatile cost inflation, up-front investments on newer products) with a strong outlook on FY20. Hot summer in 2019 is driving healthy RAC offtake, this makes us believe that stabilizer will fire (favorable base) which will drive margin expansion. Meanwhile, newer categories (GM accretive) continue to enjoy distribution expansion and drive incremental growth. Newer categories contributed 7% of revenues in FY19, we expect it to grow to 10% in FY21. V-Guards 4Q performance was healthy despite a slight miss in revenue and margins. 4Q performance was optically robust owing to a favorable base (impact from one-time ad spend). FY20 outlook is strong as we expect revenue growth to accelerate and margins to revive. We value at 35x on Mar-21 EPS, arriving at a TP of Rs 250. Maintain BUY