Shares of Unichem Laboratories continued their losing streak for the sixth consecutive trading session in Monday’s trade. The stock hit a day’s low of Rs 326.05, down 11.58 per cent against its previous close of Rs 368.75. It finally closed at Rs 334.05, down 9.41 per cent on the BSE. Looking at the day’s low, Unichem Labs traded 30 per cent lower than its 52-week high of Rs 467 on November 3, 2022.
Nevertheless, the scrip traded 44 per cent higher than its one-year low of Rs 226, touched in May this year.
A total of 5.73 lakh shares changed hands today, amounting to Rs 7.63 crore. The market capitalization or m-cap of the pharma company stood at Rs 2,357.89 crore.
Besides this, the stock has lost 23.51 per cent in six straight sessions. On a year-to-date (YTD) basis, the stock declined by 33.03 per cent.
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Analysts broadly remained ‘bearish’ on the stock and believe that selling pressure “may continue” over the counter.
Osho Krishna, Senior Analyst – Technical & Derivatives Research, Angel One Ltd. said, “Unichem has rallied over 25 per cent in last few trading weeks and has fallen towards 200-SMA (Simple Moving Average). Counter is being supported by strong volumes, which is indicating underlying weakness for the time being. Technically, the stock has immediate support around 300-odd area, which is the 200-SMA, while on the other hand, Rs. 357-367 is expected to act as intermediate resistance, followed by 390-400 inverse zone. The stock is expected to hover between the mentioned range in the comparable period, with no further upside in either direction Even decisive success can only determine the next trend.”
Manoj Dalmia, Founder & Director, Proficient Equity Pvt Ltd said, “Unichem Labs has given a breakout recently but is under selling pressure. We can expect some support near Rs 274 level and if there is further selling If this is the case, then Rs 226 is the level where it can fall. Fresh buying in the stock can be avoided as we can expect some volatile moves. Buying can be done above Rs 470.
Pavitra Shetty from Tips2trades said, “Unichem Laboratories share price has taken a huge hit due to very poor Q2 FY2023 results and bearish sentiment in the pharma sector. Currently, the trend is very bearish and has traded from Rs 326 to Rs 326.” There could also be a daily close below. There is a move towards Rs 286 in the near term. Heavy resistance is now at Rs 357.
Ravi Singh, Vice President and Head of Research, Share India, said, “Unichem Labs’ margins are expected to decline in FY2022 to FY2021 as well as FY23 profit levels as its key exports shift to the US market.” On a consolidated basis in Q1FY23, there has been net loss due to ongoing pricing pressure in Q1FY23. As a leading momentum indicator, the selling pressure in Unichem Lab stock may continue towards Rs 300 level in the medium term.
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Unichem Labs reported a net loss of Rs 70.67 crore for the September quarter this year, as against a net loss of Rs 12.82 crore in the same period last year. Net sales, however, grew by 13.13 per cent year-on-year to Rs 328.82 crore in the second quarter.
Meanwhile, Indian equity benchmarks closed almost flat on Monday amid volatile trade.
