Top picks: Sun Pharma, Lupin, Alkem, Dishman This will be the fifth straight quarter with a positive sequential top line growth for our coverage companies. With ~9% fall in rupee and stabilizing US base business, coverage EBITDA margin is likely to increase 130bps QoQ (20.2%) in 2QFY19. On YoY comparison, the universe growth would remain subdued at 6.7% and margin to decline on a high base of 2QFY18 (affected by GST restocking). With US regulatory issues getting resolved, consolidation at manufacturer level continues in the US, and withdrawal of non-profitable products by key US generic companies, we believe Indian companies should start reporting substantial improvement in their operational performance from 3QFY19.