We maintain NEUTRAL with a TP of Rs 712/sh (22x FY19E EPS). Dhanuka Agritech (DAL) reported healthy revenue growth of 11.4% YoY at Rs 3.4bn in 2QFY18, owing to new product launches which boosted volume growth. Higher RM costs resulted in lower gross margins at 41.0% (-139bps). EBITDA at Rs 750mn was impacted owing to higher other expenditure and employee cost (+7.1% and 9.6% YoY). APAT stood at Rs 528mn (+5.3% YoY).