BUY with a TP of Rs 105. Our TP is based on pro-forma financials of the merged operations, and factors in Rs 2bn p.a. of synergy benefits (mgt target is Rs 5bn). Videocon D2H (VD2H), listed on Nasdaq, reported strong 2QFY18 numbers. After a subdued performance in recent quarters, VD2H registered healthy revenue growth of 8% QoQ, and EBITDA at an all-time high of Rs 2.8bn (+13% QoQ). ARPU growth of 7% QoQ from Rs 198 in 1QFY18 to Rs 212 in 2QFY18 is the key positive.