INFY's revenue growth has picked up from 6% YoY CC in 1QFY19 to 12.4% YoY in 1QFY20, supported by large deal momentum, growth in digital and acquisitions. But margins have eroded, both on absolute (-320bps YoY) and relative basis (370bps below TCS vs. 130bps a year ago). We don't expect a cure anytime soon. High cost of delivery (rising localisation and sub-contracting), spiking attrition and large deal aggression pose serious hurdles. Current valuations amply bake in our est. USD rev/EPS CAGR of 10/7% over FY19-22E. Increased payout (85% of FCF vs. 70%) and near-term growth momentum will support valuations. The regulatory arbitrage in buyback is now closed, making it as (in)efficient as dividend. Risks to our thesis include INR appreciation and broader macro deterioration. Hold INFY if you must, but only passively. We maintain NEUTRAL on Infosys post a mostly in-line 1QFY20. INFY upped its growth guidance on strong deal wins, but margin concerns persist. Our TP of Rs 770 is based on (a generous) 18x Jun-21E EPS.