Q1 fy 23 is the first after many quarters in Novartis where profitability has shown significant improvement. We have to be sure that it is not one off and part of a larger trend. Since management does not seem to be doing concalls, there is no way of verifying this, except to wait for next qtr results or track prices and see if they tell us something. As of now, we have an inverted head and shoulders breakout from the bottom with a big gap up. Gap up is from 666 to 712. Usually there is an attempt to fill such a huge gap up atleast partially. So it would be prudent to wait for stock price to cool off before rushing in to take positions. Employee expenses have come down from 28 cr in q1 fy 22 to 20 cr in q4 fy 22 now to 9 cr in q1 fy 23. This benefit looks sustainable. Attached daily GMMA chart of Novartis, showing the inverted head and shoulders breakout I mentioned.
| Subscribe To Our Free Newsletter |
