Unichem Labs stock continues to fall for sixth straight session

Unichem Laboratories shares extended their losing run for the sixth straight session in Monday's trade. The stock dropped as much as 11.58 per cent to hit a day low of 326.05 against its previous close of 368.75. Unichem Labs traded 30 per cent lower than its 52 week high of Rs 467, hit on November 3, 2022, despite the day's low level.

The shares traded a little over 44 per cent higher than their one-year low of Rs 226, touched in May this year.

A total of 5.73 lakh shares changed hands today, which is a turnover of 7.63 crore. The market value of the pharma company was 2,357, which was the company's market value. There are 89 crore.

The stock has declined 23.51 per cent in six consecutive sessions. The scrip lost 33.03 per cent on a year-to-date YTD basis.

Analysts said Unichem 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 was backed by robust volumes, which indicates weakness in the stock for the time being. Technically, the stock has immediate support around the Rs 300 odd zone, which is the 200 SMA, while 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 next period, and any decisive breakthrough in either direction could 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 the 274 level and if further selling takes place, Rs 226 is the level where it can fall. We can expect a volatile move if we don't buy new stocks in the stock. The buying can be done above Rs 470.

Pavitraa Shetty, a tips 2 trades, said that very poor Q 2 FY 23 results coupled with a bearish sentiment in the Pharma sector has resulted in a fall in Unichem Laboratories stock price. A daily close below 326 might lead to a near term of Rs 286, as the trend is very bearish. Ravi Singh, Vice President and Head of Research, Share India, said Unichem Labs' margins have deteriorated over FY 22 over FY 21 as well as Q 1 FY 23 due to the ongoing pricing pressures in its key export US market, leading to net losses on a consolidated basis in Q 1 FY 23. The selling pressure in the Unichem labs stock may continue toward levels of Rs 300 in the medium term, as noted in the momentum indicators. Also Read: Tata Steel shares give a six month high, time to buy?

In the September quarter last year, Unichem Labs posted a net loss of Rs 12.82 crore, compared to a year ago year's net loss of Rs 70.67 crore. Net sales rose 13.13 per cent to Rs 328.82 crore in Q 2 on a yearly basis.

The Indian equity benchmarks declined for the fourth session in a row in Monday's trade.