The company is a manufacturer of Paracetamol and is engaged in pharma manufacturing chain from API to finished dosages. It is mulling capacity expansion for its major drugs Paracetamol, Metformin and Guaifenesin, for which it is incurring capex of ₹300 crore. Apart from this, the company has recently entered into CRAMS business through a JV with Omnichem and has ventured into making of Rx drugs and has filed ANDAS. On the financial front, it posted a PAT growth of nearly 17 per cent in Q4FY17 despite tepid revenue growth of just 0.7 per cent. On an annual basis, it posted a robust PAT growth of nearly 39 per cent despite of revenue de-growth in FY17. Taking into consideration of a forward FY18 P/E of nearly 17 and 30 per cent PAT CAGR over FY17-19, we recommend a Buy, for a target of ₹161 and with a stop loss of ₹125.