We maintain Buy with a TP of Rs 700/sh (22x Jun'20 EPS). Dhanuka Agritech (DAGRI) reported muted revenue of Rs 2.1bn (up 2.4% YoY) in 1QFY19, owing to lower change in product mix and inability to pass on RM inflation. Higher RM cost resulted in lower gross margins 35.2% (down 993 bps QoQ, and 240 bps YoY). EBITDA (at Rs 159mn) was largely impacted due to higher RM prices.