At the CMP, we maintain Neutral with a TP of Rs 880 (26x FY19 EPS). Gulf Oil Lubricants 1Q numbers came in above expectations. The core business delivered 7% volume growth, driven by distribution expansion and OEM tie-ups, despite GST-related headwinds. Revenue growth was 2.7% YoY at Rs 2.8bn, supported by core volume growth rate of 7% (excluding the institutional order). Gross margins improved ~190bps (took price hike in May-17). Margin was largely flat at 17.6%, owing to higher overheads and employee expenses.