With a further 8% fall in the stock price, our conviction on our BUY rating has grown multifold as we realize that the trailing valuation is now 14x FY19 EPS for a business that holds one of the top 5 pharmaceutical franchises in India, which is also the fastest-growing among large peers. Moreover, there is value unlocking at play, with the potential listing of the novel subsidiary and debt reduction on account of divestment of non-core assets. We believe the de-merger will lead to sharp improvement in profitability for the ex-novel business and a healthier balance sheet. We value the novel and specialty businesses at Rs 135/sh. As we understand this listing could take between 12-15 months and is contingent upon several approvals, we have not included it in the TP. Glenmark delivered sub-par numbers in 1QFY20 and only the India segment was able to impress with the highest growth among listed-peers. Valuations are as low as 15/12x FY20/21E P/E, while the India business alone is valued at Rs 450/sh. We believe the post-result fall was an overreaction. Re-iterate BUY with a revised TP of Rs 500 (16x FY21E EPS).