We maintain NEUTRAL with a TP of Rs 730/sh (22x Dec FY19E EPS). Dhanuka Agritech (DAL) reported muted revenue growth of 4.6% YoY at Rs 2.21bn in 3QFY18, this was largely driven by volume growth. Higher RM costs resulted in lower gross margins at 43.3% (-134bps). EBITDA stood at Rs 353mn was impacted owing to higher employee cost (+13.4% YoY), consequently, EBITDAM declined by 237bps YoY to 15.9%. APAT stood at Rs 286mn (+6.4% YoY).