We recommend NEUTRAL with a TP of Rs 815/sh (17x Sept FY19E EPS). Insecticides Indias (INST) 2QFY18 revenue came in at Rs 4.1bn (+0.7% YoY). The companys flat growth was on account of the withdrawal of certain generic products. The introduction of certain specialty products led to an improvement in gross margins by 296bps YoY to 25.5%. Consequently, EBITDA grew by 17.7% YoY to Rs 556mn, and EBITDAM improved by 193bps to 13.4% for the quarter. Lower interest cost and higher other income boosted PAT to Rs 361mn (+28.7% YoY).