Shares of Unichem Laboratories extended their losing run for the sixth straight session in Monday's trade. The stock slumped as much as 11.58 per cent to hit a day low of Rs 326.05 against its previous close of Rs 368.75. It eventually settled 9.41 per cent lower at Rs 334.05 on BSE. Considering the day's low level, Unichem Labs traded 30 per cent lower from its 52-week high of Rs 467, hit on November 3, 2022.
Yet, the script traded a little over 44 per cent higher from its one-year low of Rs 226, touched in May this year.
A total of 5.73 lakh shares changed hands today, amounting to a turnover of Rs 7.63 crore. The pharma company's market capitalisation or m-cap stood at Rs 2,357.89 crore.
Further, the stock has declined 23.51 per cent in six straight sessions. On a year-to-date (YTD) basis, the scrip lost 33.03 per cent.
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Analysts largely remained 'bearish' on the stock and opined that selling pressure in the counter "may continue".
Osho Krishan, Sr. Analyst- Technical & Derivative Research, Angel One Ltd, said, "Unichem has corrected over 25 per cent in the past couple of trading weeks and has plunged toward the 200-SMA (Simple moving average). The fall in the counter is being backed by robust volumes, indicating inherent weakness for the time being. Technically, the stock has immediate support around the Rs 300-odd zone, which is the 200-SMA, while on the flip side, the bearish gap of Rs 357-367 is expected to act as intermediate resistance, followed by the Rs 390-400 odd zone. The stock is expected to hover in between the mentioned range in the comparable period, and any decisive breakthrough in either direction could only set the next trend."
Manoj Dalmia, Founder and Director of Proficient equities Private Ltd, said, "Unichem Labs gave a breakout recently but has been under selling pressure. We can expect some support near Rs 274 level and if further selling takes place, Rs 226 is the level where it can fall. One may avoid fresh buys in the stock as we can expect some volatile moves. Buying can be done above Rs 470.
Pavitraa Shetty from Tips2trades, said, "Very poor Q2 FY23 results coupled with a bearish sentiment in the Pharma sector has led to a strong fall in Unichem Laboratories stock price. Currently, the trend is very bearish and a daily close below Rs 326 could even lead to Rs 286 in the near term. Massive resistance now at Rs 357."
Ravi Singh, Vice President and Head of Research, Share India, said, "Unichem Labs' margins have deteriorated in profitability levels in FY22 over FY21 as well as Q1 FY23 due to the ongoing pricing pressures in its key export US market leading to net losses on a consolidated basis in Q1FY23. As prominent in the momentum indicators, the selling pressure in the Unichem labs stock may continue towards the levels of Rs 300 in the medium term."
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Unichem Labs posted a net loss of Rs 70.67 crore in the September quarter this year as against a net loss of Rs 12.82 crore reported in the same period last year. Net sales, however, rose 13.13 per cent to Rs 328.82 crore in Q2 on a yearly basis.
Meanwhile, Indian equity benchmarks settled almost flat on Monday amid volatile trade.
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