Key insights
- Elite Pharmaceuticals (ELTP) is reported to be trading at full valuation but experiencing revenue expansion, margin improvement, and pipeline growth. Investment in capacity and in-house manufacturing are noted. While the author expresses a bullish sentiment, the overall impact on the broader US equity market is limited due to the company's small size.
Elite Pharmaceuticals is trading approximately inline with a full current valuation (4x sales), while reporting expansion in revenue from multiple commercialized ANDAs, reinvestment in capacity / packing lines, expanding margins from in-house manufacturing of proprietary anti-addictive drug deployment, and a growing pipeline of pending approvals.
They have a core business built around specialty generics with multi-year commercial partnerships, and continue to add ANDAs to their portfolio while scaling production and packaging lines. Their facilities are FDA inspected.
CEO has fight, plays the long game, but very best of all: IR picks up the phone when you call.
The last of these is enough to take a leg, which I did this morning.