With the recent run-up in the stock price and the inspection at Unit-I looming, we maintain a NEUTRAL rating on the stock, with a revised TP of Rs 680 (16x Jun-19E). We foresee ~2% revenue CAGR over FY17-20E, and ~5% earnings CAGR. With the import alert (IA) on its crucial Unit-II facility coming into force at the end of Mar-17, 1QFY18 was expected to finally reveal the true picture of Divis Labs (DIVI) business as it stands. Significantly, the top-line declined ~19% YoY, EBITDA margin came in at ~30% (vs ~40% in 1QFY17) and PAT was Rs ~1.8bn (down ~42% YoY). Absence of non-exempted products in revenues, coupled with the time taken to establish protocols and procedures required to export the exempted products under the IA, led to this steep decline in the business. Remediation costs at Unit-II and preparations at Unit-I also contributed to the margin decline.