Sun Pharmaceutical Industries (SUNP) continued to deliver a weak performance in 3QFY18. Missing our estimate by 2.3%, its sales declined by 15.9% YoY (flat on QoQ basis) led by weak US sales and muted growth in domestic business (5.9% YoY, Emerging Markets and RoW biz. Despite 333bps QoQ decline in gross margin led by Taro margin fall, SUNP's EBITDA margin improved by 116bps QoQ due to lower other expenses/R&D; cost, undisclosed but meaningful forex gain and contribution from gCoreg CR launch. Adjusted for one-time deferred tax adjustment of Rs5.13bn relating to changes in US tax rates, SUNP's PAT declined by 3.7% QoQ to Rs8.8bn. As we believe current valuation limits further upside, we revise our recommendation on the...