We maintain NEUTRAL rating with a revised TP of Rs 455 (18x June19E + Rs 40/sh). We have cut the EPS multiple from 20 to 18, considering the deteriorating business fundamentals. 1QFY18 was one of Sun Pharmas (SUNP) worst quarters in the past decade, with margins dipping to 17.6% (halved YoY), and a reported loss of Rs 4.2bn. Even adjusted for one-off legal settlement charges of Rs 9.2bn, PAT was down 74% YoY and 57% sequentially. The top-line sunk 25%YoY (13% QoQ) to Rs 62bn, with GST hurting the India business revenue (-5% YoY) and increased competitive intensity for Taro lowering US revenues (-11% QoQ) this quarter.