The mgmt is confident in achieving 20/25% revenue/PAT CAGR over the next few years driven by the ramp up in formulations and US sales by leveraging its expanded facilities. Increased efficiencies and oplev will enable EBITDA margin improvement (+200bps to 19% over FY19-21E). With limited capex requirements over the next few years, healthy FCF (Rs 1.5bn+ annually) will enable debt reduction (net debt at Rs 8.63bn now). We model 16/23/22% revenue/EBITDA/PAT CAGR over FY19-21E. At 8.0/6.5x FY20/21E EPS, Granules is trading at a steep discount to peers. Improving fundamentals and promoter pledge release will drive re-rating. We maintain BUY on Granules following yet another quarter of robust YoY growth driven by expanded capacities. EBITDA margin at 19.9% was 300bps above estimates, despite a 5% miss on revenue. Our TP is unchanged at Rs 170 (12x FY21E EPS).