Despite weaker US performance and lower profitability, we remain positive on the stock due to expected value unlocking from the listing of the novel subsidiary and potential debt reduction on account of divestment of non-core assets. We believe the de-merger will lead to better profitability for the ex-novel business and an improved balance sheet (debt reduction and lower intangibles). We value the novel and specialty businesses at Rs 135/sh (value of the base business stands at Rs 595/sh, 16x FY21E EPS). However, we believe this listing could take anywhere between 12-15 months. We maintain BUY on GNP despite reporting marginal miss in profitability. Lower US sales due to the gMupirocin stock-out situation was the key reason. TP has been reduced to Rs 730/sh on account of weaker guidance for the US generics business.