In spite of muted growth expectation of 8.7% sales CAGR and 6% PAT CAGR over CY18-20, the MHCIE stock, based on CY20 estimates is quoting at attractive valuations of PE of 9.7x, EV/EBITDA of 5.0x and P/B of 1x. The stock is quoting at almost 50% discount to sectoral valuations (Refer page No.5) which we believe is unjustified. The Company is expected to generate Rs19bn operating cash over CY18-20E. We believe, the Company has completed its consolidation phase and likely to enter into growth phase through organic and inorganic route. Given the stable business growth outlook, improvement in balance sheet and decent return ratios, we believe stock is due for rerating. We maintain our "BUY" rating on the stock with a price target of Rs. 244 (PE of 15xCY20E earnings).