Maintain NEUTRAL with a TP of Rs 2,400 (16x Dec19E). Dr. Reddys Labs (DRRD) 3QFY18 was skewed by one-offs. While the top-line growth of ~3% YoY/~7% QoQ was optically positive, it was driven by a Rs 1.3bn milestone payment as a part of DRRDs out-licensing agreement with Encore Dermatology. Adjusted for this, the top-line was flat YoY and showed a slight sequential improvement (~4%). The EBITDA margin at 20.2% was also boosted by the milestone amount.