Maintain BUY with a revised TP of Rs 2,445 (24x FY20E EPS). The fourth quarter is seasonally weak for ALKEM, and 4QFY18 was no different. The top-line grew 21% YoY but declined 13%QoQ to Rs 15.1bn. EBITDA margin at 7.5% and PAT at Rs 745mn missed our estimates by ~440bps and 46% respectively. R&D; spend during the quarter was significant (7.4% of sales vs 6.7% expected), with 11 ANDAs filed in 4QFY18. There was also MTM loss of Rs 283mn included in other expenses for real estate investments. Adjusted for this, EBITDA margin was at 9.4% in 4QFY18.