Downgrade to Neutral from BUY with SOTP based target price of Rs 153 (4x Sep 20E EV/e for standalone refining, marketing and pipeline and Rs 44/sh from other investments). IOCs 2QFY19 EBITDA came in at Rs 68.74bn, down 6.8% YoY. This is majorly attributable to a 14.9% YoY fall in the reported GRM (USD 6.8/bbl) and an increase in opex to Rs 115.96bn (vs Rs 75.31bn in Q2FY18, +54% YoY). This was partially offset by an increase in the blended gross marketing margin (+18.4% YoY) that came to Rs 3.74/ltr. Marketing volumes were up 3.4% YoY to 21.6mmt. APAT stood at Rs 33.22bn, down 10.1% YoY.