We like company's low risk business model (non outcome based), focus on scaling core associates and diversified client base across sectors. There is scope for 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 19/24/19% CAGR over FY19-22E. Risks include adverse macros, discontinuation of Sec 80JJAA tax incentive and delay in tax refunds. We maintain BUY on Teamlease despite slight miss on revenue and margin in 2QFY20. NETAP trainees addition was impacted due by core sector slowdown. However, general staffing (~75% of total associates) is on growth track and will have a strong 2HFY20. Our TP Rs 3,415 is based on 40x Sep-21E EPS.