We maintain NEUTRAL with a TP of Rs 780/sh (22x FY19E EPS). Dhanuka Agritech (DAL) reported muted revenue of Rs 2.1bn (+4% YoY) in 1QFY18, owing to lower inventory build-up by dealers/retailers ahead of GST implementation. Higher RM cost resulted in lower gross margins 37.6% (-126bps). EBITDA (at Rs 245mn) was impacted owing to higher other expenditure (+14%). APAT was down at Rs 161mn (-19%).