Q1 revenues were mainly driven by strong growth in the US. The company also reported one of the strongest gross margin performances although as the management asserted, these are unsustainable. Overall, US growth remains strong but opportunistic whereas India growth remains slightly insipid. With the aggressive R&D and capex, the management has signalled its long term strategy for the next five to six years, especially on the US front. This includes a foray into niche areas like oncology, injectables, derma, etc. We believe this is fraught with a new set of challenges. The benefits are most likely to be back-loaded. Immediate cash burn is likely to weigh on sentiments in the near term. Our target price arrives at Rs540 based on 22x FY21E EPS of Rs 25.4.