With the US biz de-risked and traction gained in other segments on the back of additional capacities, we expect ~6% CAGR over FY19-21E in revenue (~20% adjusted for Aus divestment). Ramp up in US and reg. markets will drive profitability, while reduced depreciation and interest cost (Aus divestment) will enable 146% PAT CAGR on a low base. We remain optimistic of an improved operating performance and are relieved to see the reduction in debt and a healthier balance sheet. The valuations remain attractive at 12.2/9.0x FY20/21E P/E. We maintain BUY on Strides Pharma (STR) following an in-line 1QFY20. The uptick in US continues, while other segments continue to perform well. Our TP is unchanged at Rs 650 (15x FY21E EPS + Rs 30/sh for biopharma).