Teamlease is witnessing steady demand across sectors. Rise in open positions (~12K vs. 8K) reflects robust demand while platforms like Freshersworld.com are helping to attract talent. We like company's low risk business model (non outcome based), focus on scaling Core+NETAP associates and diversified client base. There is scope for further margin expansion through productivity benefits and better business mix. Teamlease's ability to grow ~20% organically, focus on driving productivity through automation, lower funding exposure, domestic exposure and high management pedigree commands premium valuations vs. peers. We expect revenue/EBIT/PAT to grow at 21/27/23% CAGR over FY19-22E. Risks include adverse macros, discontinuation of Sec 80JJAA tax incentive and delay in collection of tax refunds (Rs 2.3bn). We maintain BUY on Teamlease based on in-line 1QFY20. Positives include (1) Acceleration in core staffing growth, (2) Improving core productivity and (3) Growth in mark-up. Our TP Rs 3,520 is based on 40x June 21E EPS.