As per the management’s own assertion, revenue growth for 9MFY20 has been behind the guidance curve as the order offtake is yet to gain the expected momentum. That said, the management has guided for decent traction for FY21 mainly due to continuous client additions, extension of existing contracts besides increasing manufacturing and biological contributions. The company remains aggressive on the capex front (~US$425 million already spent + another US$ 125 million earmarked by FY21), attributable to firm growth plans. The asset turnover from this mega capex will be a significant determinant for future visibility. On the margins front, the company is witnessing some pressure due to compliance, safety and quality related expenses besides employee addition, which, we believe, are attributable to increasing scalability and which is likely to persist. The company has recently added some elite clients like Amgen, Zoetis, Herbalife, GSK and multiple year extension of BMS and Baxter contracts. In a nutshell, the company remains well poised to capture opportunities in the global CRO space on account of strategic outsourcing by global innovators. We arrive at a target price of Rs 360 based on ~30x FY22 EPS of Rs 12.0.