We believe with the enhanced focus on domestic business (implementation of one India strategy), specialty initiatives in the US, margin improvement (better mix, cost optimization), the ROCE should improve to 13.5% over the next two years. The stock is trading at reasonable valuation of 20x/17x FY21/22 EPS (~15% discount to its 5 year historical average). gAdvair Ph III data read out in March 20, will be the key catalyst in the near term. Maintain Buy. TP of Rs495/sh. Cipla received warning letter at Goa plant from the US FDA. The plant was classified as OAI (Official action Indicated) in Jan 20, and as such we did not factor any product approvals in our estimates. As per the company, no limited launches are impacted and the guidance of one niche launch per quarter remains on track. Goa plant accounts for 2.5% of FY19 revenues (single sourced products) and ~6% of revenues (including products with alternate source). The resolution timeline remains uncertain and will be based on Ciplas response to US FDA (mid March), completion of remediation activities and a successful re-inspection.