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 ~15-20% organically, focus on driving productivity through automation, lower funding exposure, domestic focus and high management pedigree commands premium valuations vs. peers. We expect revenue/EBIT/PAT to grow at 19/21/17% CAGR over FY19-22E. Risks include adverse macros, discontinuation of Sec 80JJAA tax incentive and delay in tax refunds. We maintain BUY on Teamlease based better than expected revenue growth in 3QFY20. Growth in core business will continue based on higher open positions and recovery in NETAP. Margin expansion was lower than estimate but cost cutting initiatives, improving productivity and change in business mix will lead to margin expansion. Our TP Rs 3,444 is based on 40x (5Y average 1-y forward P/E of 35x) Dec-21E EPS.