Top picks: CDH, ALKEM, DCAL, NLL After reporting two better quarters, we expect the top line for our pharmaceutical coverage universe to decline 2-3% QoQ while EBITDA margin is likely to remain steady at 21% in 4QFY18. Within the sector, considering the seasonality in the business, only CRAMS companies are likely to report sequential improvement. Most of the US focused formulation companies will report single digit decline in the top line and earnings are likely to be better sequentially due to low base of 3QFY18 (hit by US tax adjustments). Although YoY performance appears much better (Revenues Up 3%YoY and EBITDA Margin up 170bps YoY), structural issues like unfavorable US pricing environment, pending plant clearances and low visibility on the lucrative approvals are still dominating. We continue to believe that the US generic businesses are not completely out of the woods and will need more time to recover.