Key takeaways from Q1 numbers were strong growth in crop protection, steady growth in pharma but lower blended level margins that are attributable to a product mix and plant related expenses. The management still remains conservative on the revenue growth guidance front (10-15% in FY20 maintained) as the focus is likely to be on high margin products besides a close watch on capacities. With proven capabilities and management pedigree, we believe Hikal offers a compelling value proposition as it continues to expand in both pharma and crop protection segments with separate focus and a calibrated approach. This bodes well in the current scenario when Chinese supply disturbances are likely to create opportunities for Indian players both in APIs and crop protection CDMO. We arrive at a valuation of Rs 190 based on 14x FY21E EPS of | 13.6.