Maintain BUY with a SOTP-based TP of Rs 3,394 (18x 20E Core EPS + cash + 40% discount for KTM stake) vs Rs 3,712 earlier. Aggressive pricing and higher contribution of entry level models in the sales mix weighed on 1QFY19 margins for Bajaj Auto (BJAUT). Net revenue at Rs 74.2bn (+36% YoY) was led by stellar 38% volume growth (2W +33%, 3W +74%), but was partially offset by ~1% decline in net realization. EBITDA rose 36% YoY at Rs. 12.8bn at a disappointing 17.3% margin. APAT rose 17%.