2QFY20 is mostly in line with our positive thesis on CIFC. Diversification across segments/geographies and better access to funds (via parentage and strong credit practices) is enabling it to withstand sectoral headwinds. Even though VF GNPAs have risen, they remain best in class and nowhere near alarming. While we have increased our opex estimates, in view of the faster opex growth over the past few qtrs, current efficiency levels are acceptable. The leadership clarity is welcome. CIFC remains our top-pick amongst asset financiers. 2QFY20 saw disbursals dip QoQ (albeit up ~7% YoY), resilient AUM growth (~24%) and slight NIM expansion at CIFC. The bump-up in opex and GS-III were disappointing but excusable. Maintain BUY. Our TP is Rs 404 at 3.5x Sept-21E ABV.