Top picks: CDH, LPC, GNP and GRAN While the 4QFY17 performance of the Pharma sector was impacted by a sudden drop in US sales, 1QFY18 is likely to be adversely affected by GST-related channel de-stocking. Overall, we expect a single-digit top-line decline YoY for our coverage universe. The drop in profitability is likely to be influenced by both lower sales of exclusive products (gGleevec, gGlumetza and gAbilify), and compensation for lost tax credits offered to dealers in the face of GST implementation. However, we believe that the operating performance is likely to have bottomed out in 4QFY17 and companies like LPC, CDH, GNP and ARBP are now receiving a higher number of product approvals, leading to stronger base businesses in the US.