Wockhardt: Q1 Result Abv Estimates---Sustaining Above 1625 TGT May Be 1800-2000-2250--But Has To Be US/UK Compliant

Technical Charts:

Technical Analysis:

Looking at the chart, Wockhardt (CMP:1652) has to sustain above 1625-1640 for an immediate to short term target of 1660-1685-1705-1726 & 1765. Only consecutive closing above 1765, it may target 1815-1860-1925-2000 & 2166-2200-2250 in the mid to long term (bullish case scenario).

On the flip side, inability to sustain above 1625 may drag it to 1610-1599 and sustaining below that it may further fall to 1585-1562-1549-1535-1518-1503 zone. Consecutive closing below 1503, it may further crash to 1485-1450-1401-1386 zone in the near term ( bear case scenario).

Technical Trading Levels (Positional):

	SL</>10	FROM SLR
		WOCKPHM	CMP	1652
			T1	T2	T3	T4	T5	T6	T7	SLR
Strong >	1625		1640-60*	1685	1705-26*	1765	1815	1860	1925-2000	<1610
Weak <	1610		1599-85*	1562-49	1535-18	1503*	1485	1450	1401-1385	>1625

Some Inputs:

Q1FY16 result of Wockhardt is by & large above street estimates due to low base effect and better domestic operations but going forward it has to be compliant with US/UK FDA regulatory environment, which may be quite challenging. So, it will be a high risk play in Wockhardt.

Techno Funda Valuation As Par BG Metrics(Modified):

Current median valuation : 1385

Projected fair valuations: 1700-1975-2250 (FY:16-18)

SCRIP	EPS(TTM)	BV(Act)	P/E(AVG)	LONG TERM	SHORT TERM	MEDIAN VALUE	200-DEMA	10-DEMA
WOCKPHARMA	36.65	333.79	36.4	1329.44	1443.82	1386.63	1324.84	1562.62

WOCKPHARMA

54.45

382.25

36.4

1620.43

1759.85

1690.14

1324.84

1562.62

WOCKPHARMA

73.85

437.75

36.4

1887.16

2049.52

1968.34

1324.84

1562.62

WOCKPHARMA

96.5

501.25

36.4

2157.23

2342.83

2250.03

1324.84

1562.62