Maintain BUY with TP of Rs 1,325 (20x FY19E EPS). SML Isuzu posted in-line revenue in 1Q at Rs 3.1bn (31% YoY). Volumes fell by 36% YoY owing to de-stocking at the dealer level pre GST implementation, weak replacement demand and subdued freight rates. EBITDA came in at Rs 183mn (-71% YoY), with margin at 5.7% (-770bps YoY), impacted by operating de-leverage and one-time conversion cost (~Rs 50mn) of vehicles from BS3 to BS4. Although FY18 numbers are expected to be subdued owing to hit in earnings in 1Q (peak season for school buses), we believe the company is well-placed to reap the rising demand of the passenger carrier segment.