Q1FY21 earnings beat our estimates across most parameters led by apt business recalibration aiding fees, loans and asset quality and strong operating leverage. While current asset quality masks true picture on delinquencies, asset quality management stands impressive with (a) morat AUMs at 18% (including flexi loans morat) (b) elevated COVID provisioning of Rs24bn covering 11% of moratorium book (c) collection ramp-up (added 2500 staff to 4500 existing collection staff), collections up 8-10% in each Jun- Jul (d)improving bounce rates by 3-4% every month from past 3 months (c) business calibration with stringent LTVs and existing customer focus for sales finance, auto finance, LAS and gold loan businesses and deferred kickstarting of vulnerable bizs, viz; LAP, SME, B2C urban/rural and commercial lending to Jul’21. Benign growth (12%YoY) and higher credit costs guidance (110% increase YoY) for FY21 is less perturbing given healthy PPoP (Q1FY21: 25%YoY/7%YoY:FY21), liquidity buffers (19% of liabilities) and capital sufficiency (Tier I: 23%, total CAR:26%). Against this backdrop, we marginally prune down our growth estimates (12% vs 15% earlier) but maintain elevated NPA/credit costs estimates at 3%+/4% respectively for FY21. Capital and liquidity sufficiency should enable BAF to participate in consumption rebound sooner, hence we envisage robust 24% RoE and 4%RoA; subsequently our EPS estimates stand tweaked by 8-10% over FY21-23. Reiterate BUY as we roll over target multiple to Sep’22 estimates valuing Co. at 4.5x PABV arriving at price target of Rs3,815.