Alkem Laboratories Ltd Share Technical Analysis

Latest technical analysis for the Alkem Laboratories Ltd Share

Summary: Alkem Labs has given below average performance for Q1FY18 due to Channel destocking because of GST rollout on July 1^st, 2017 and a better performer consistently before demonetization and GST Rollout and we believe the correction in the stock price in the lead up to this result presents a good opportunity for investors to buy the stock for term of 3 years, despite regulatory headwinds of GST(tax) increment & Price correction the domestic india growth outlook is positive with Increments in US market where only 1/3 of the Portfolio in US has been monetised till now, Many Products are awaiting ANDA Approvals & likely to be launched in coming 2-3 years. Management continues to guide for 12 to 15 ANDA filings (2 in Q1’18) and high single digit launches in FY18 going ahead. Secondly, Alkem has received clearance for units from FDA. 2^nd quarter for alkem would be stronger comparatively due to Channel restocking and higher growth demand from domestic as well as Global market especially US. Currently Alkem lab is Earning approx. 73% from Indian markets while rest from Exports. The Chronic segment has also been growing at 30% y.o.y from past 5 years and can see further growth in the segment

Summary: Alkem Labs look Weaker and can continue to be bearish in the short term.