Maintain NEUTRAL rating, with a revised TP of Rs 1,095 (22x FY20E). After resolving the import alert for Unit 2, this was the 2nd consecutive quarter where Divis Lab (DIVIS) has maintained strong sequential improvement in its operational performance. Top line increased 5%QoQ/2%YoY, EBITDA at Rs 3.8bn was up 13%QoQ/-1.2%YoY and Reported PAT came in at Rs 2.6bn up 16%QoQ/0.9%YoY. EBITDA margin at 35.5% is suggesting that the business has returned to near normalcy. It was up 256bps QoQ/down 113bps YoY in 4QFY18.