Healthy B/S & return ratios, new project commissioning – key lever, BUY! HSCL has a lean balance sheet with absolute debt at ~| 600 crore and consequent debt: equity at 0.3x. It also realises ~1.5x asset turnover, steady EBITDA margins of ~20%+ and realises 20%+ RoCE thereby justifying its stand as a portfolio play. The company, however, has witnessed some delays in commissioning new projects and will be a key monitorable, going forward. Incorporating the 9MFY19 financials, revising our estimates, we now expect sales and PAT to grow at a CAGR of 15.3% and 21.8%, respectively, over FY18-20E. We value HSCL at Rs 130 i.e. 15x P/E on FY20E EPS of Rs 8.6 and maintain our BUY rating on the stock.