For years, the company has been dealing with high profile MNCs like Merck & Co, Bayer, Syngenta, BASF, Pfizer to name a few. 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. The company has spent ~| 500 crore over the last five years to augment capacities. After years of volatility in growth, Hikal has been witnessing a relatively stable growth trajectory. We expect sales, EBITDA, PAT to grow at a CAGR of 15%, 18%, 30%, respectively, in FY19-21E on the back of new launches and better operating leverage. Simultaneously, we also expect a 330 bps RoCE improvement to 17.3% through FY21. We arrive at a valuation of Rs 200 based on 15x FY21E EPS of Rs 13.3.