We cut FY18/19E earnings est by 10/5%, factoring in weak 1QFY18 numbers. We value FML on 20x P/E on Jun-19EPS, hence our TP is Rs 5186 (Rs 5350 earlier). Maintain BUY Force Motors 1QFY18 was adversely impacted by lower volumes in the OEM segment, owing to de-stocking undertaken by dealers ahead of GST implementation. Net revenue at Rs 7.5bn was dragged down by a 8% decline in the automotive business. This was offset by 9% growth in sub-contracting (auto comp). EBITDA margin at 5% (Rs 373mn) was hit by a fall in OEM revenue and higher input cost (as seen in higher RM expenses - +393bps YoY). APAT fell 42% YoY to Rs 300mn.