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Elite Pharmaceuticals (ELTP)
OTHER OTC:ELTP
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Elite Pharmaceuticals (ELTP) AI Stock Analysis

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ELTP

Elite Pharmaceuticals

(OTC:ELTP)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
$0.50
▼(-27.54% Downside)
Elite Pharmaceuticals benefits from strong revenue growth and positive earnings call sentiment, but faces challenges with profitability and valuation metrics. Technical indicators show bullish momentum, though caution is advised due to potential overbought conditions.

Elite Pharmaceuticals (ELTP) vs. SPDR S&P 500 ETF (SPY)

Elite Pharmaceuticals Business Overview & Revenue Model

Company DescriptionElite Pharmaceuticals, Inc. (ELTP) is a specialty pharmaceutical company focused on the development and commercialization of innovative drug delivery systems and products. The company operates primarily in the pharmaceutical sector, with a focus on developing oral and injectable dosage forms. Elite Pharmaceuticals specializes in the formulation of generic and proprietary therapeutics, particularly in the areas of pain management, addiction, and other therapeutic categories, leveraging its advanced drug delivery technologies to enhance the bioavailability and efficacy of its products.
How the Company Makes MoneyElite Pharmaceuticals generates revenue through several key streams. Primarily, the company earns money by developing and selling generic pharmaceuticals, which are typically marketed under its own brand or through partnerships with larger pharmaceutical firms. The company also engages in contract manufacturing for other pharmaceutical companies, providing formulation development and production services. Additionally, Elite Pharmaceuticals has entered into licensing agreements for its proprietary drug delivery technologies, allowing it to earn royalties from its partners. These revenue streams are supported by strategic partnerships with other pharmaceutical companies and collaborations that enhance its market reach and product offerings.

Elite Pharmaceuticals Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and profit growth, successful product launches, and a robust balance sheet. However, concerns were raised over non-cash derivative expenses affecting pretax income and earnings per share, alongside high competition in key markets.
Q4-2025 Updates
Positive Updates
Record Revenue Growth
Total revenues for the 2025 fiscal year were $84 million, a $27.9 million increase or 52% over the prior year.
Significant Profit Increase
Operating income for 2025 was $19.6 million, an increase of 82% from the previous fiscal year.
Successful Product Launch
Launch of the Lisdexamfetamine product line in the last quarter contributed significantly to revenue growth, capturing about 8-10% of the market despite high competition.
Positive Cash Flow
Operating cash flow was positive at $7.5 million, compared to a $3.2 million cash burn the previous year, marking a $10.7 million swing to the positive.
Strengthened Balance Sheet
Working capital increased to $45.9 million from $27 million, and current liabilities decreased, indicating low and decreasing debt.
Negative Updates
Non-Cash Derivative Expenses
An $18.9 million expense related to the change in fair value of derivatives, primarily due to stock price increase, resulted in a pretax loss of $52,000.
Earnings Per Share Decline
Earnings per share for 2025 was 0, down from $0.02 the previous year, influenced by non-cash items.
High Competition in Key Markets
The Lisdexamfetamine market is highly competitive with over 10 suppliers, leading to price and quota pressures.
Company Guidance
During the Elite Pharmaceuticals conference call, several key financial metrics and growth indicators were highlighted for the fiscal year ending March 31, 2025. The company reported total revenues of $84 million, marking a 52% increase from the previous year’s $56.6 million. This significant growth was attributed to the establishment of the Elite label in niche markets and the successful launch of the Lisdexamfetamine product line. Operating income rose to $19.6 million, reflecting an 82% increase from the prior year's $10.8 million. Despite a pretax loss of $52,000, due to a noncash expense of $18.9 million related to the change in fair value of derivatives, the company maintained a positive operating cash flow of $7.5 million, a notable improvement from the previous year's $3.2 million cash burn. Working capital increased by 41% to $45.9 million, underscoring a strengthening balance sheet with decreasing debt. The earnings per share (EPS) for the year was reported as 0, influenced by the aforementioned noncash derivative expense, compared to $0.02 in the previous year.

Elite Pharmaceuticals Financial Statement Overview

Summary
Elite Pharmaceuticals shows strong revenue growth but struggles with profitability due to net losses and fluctuating margins. The balance sheet is robust with adequate equity and controlled debt levels, but cash flow inconsistencies highlight operational inefficiencies.
Income Statement
65
Positive
Elite Pharmaceuticals shows a strong revenue growth trajectory, with significant increases in revenue over the past few years. Despite the growth, the company faced a net loss in the latest period, impacting the net profit margin negatively. However, the gross profit margin remains robust, indicating efficient production. The variability in EBITDA margin over the years suggests operational challenges that need addressing.
Balance Sheet
72
Positive
The balance sheet reveals a healthy equity position with a favorable equity ratio, indicating strong financial resilience. The debt-to-equity ratio is manageable, suggesting moderate leverage, which poses less risk to financial stability. Return on equity has fluctuated significantly, reflecting volatility in profitability.
Cash Flow
58
Neutral
Cash flow analysis indicates inconsistent free cash flow performance, with recent positive growth but past periods of negative free cash flow. The operating cash flow to net income ratio suggests that cash generation from operations can improve. The company's ability to convert net income into cash remains a challenge, as evidenced by the free cash flow to net income ratio.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue105.45M84.04M56.63M34.16B32.26M25.38M
Gross Profit58.84M40.09M26.36M16.59B14.80M11.87M
EBITDA1.29M2.84M2.58M6.43M6.27M5.93M
Net Income-10.82M-4.31M20.11M4.41B8.90M5.09M
Balance Sheet
Total Assets111.34M96.39M83.65M40.90M35.15M26.19M
Cash, Cash Equivalents and Short-Term Investments21.74M11.32M7.11M7.83M8.54M3.19M
Total Debt6.68M10.91M11.74M3.89M2.78M2.38M
Total Liabilities63.66M42.87M26.07M11.94M9.93M10.04M
Stockholders Equity47.68M53.52M57.58M28.96M25.22M16.15M
Cash Flow
Free Cash Flow18.02M4.93M-4.09M-2.40M6.01M2.86M
Operating Cash Flow19.09M7.46M-3.28M3.34M6.51M3.19M
Investing Cash Flow-954.76K-2.40M-809.65K-5.74M-498.57K-262.78K
Financing Cash Flow-4.78M-825.74K3.39M1.70M-667.13K-869.83K

Elite Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.69
Price Trends
50DMA
0.60
Positive
100DMA
0.59
Positive
200DMA
0.54
Positive
Market Momentum
MACD
0.01
Positive
RSI
58.60
Neutral
STOCH
68.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELTP, the sentiment is Positive. The current price of 0.69 is above the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.60, and above the 200-day MA of 0.54, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 68.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELTP.

Elite Pharmaceuticals Risk Analysis

Elite Pharmaceuticals disclosed 40 risk factors in its most recent earnings report. Elite Pharmaceuticals reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Elite Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$655.91M7.9827.44%3.86%-2.60%
70
Outperform
$1.49B-464.85-3.22%132.35%97.34%
69
Neutral
$1.25B10.0517.78%1.37%-18.10%
68
Neutral
$741.00M-20.42%58.70%-152.33%
54
Neutral
$724.63M-8.6889.60%-24.38%-94.72%
48
Neutral
$520.12M-35.04-3.04%-4.21%7.78%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ELTP
Elite Pharmaceuticals
0.68
0.29
74.36%
AVDL
Avadel Pharmaceuticals
15.31
2.15
16.34%
SIGA
SIGA Technologies
8.96
2.65
42.00%
AMPH
Amphastar Pharmaceuticals
26.92
-21.43
-44.32%
ORGO
Organogenesis Holdings
4.26
1.44
51.06%
AQST
Aquestive Therapeutics
5.65
0.89
18.70%

Elite Pharmaceuticals Corporate Events

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Elite Pharmaceuticals Reports 114% Revenue Growth in Q1 2026
Positive
Aug 14, 2025

Elite Pharmaceuticals reported significant financial growth for the first quarter of fiscal year 2026, ending June 30, 2025, with revenues reaching $40.2 million, marking a 114% increase from the previous year. This growth was largely driven by the successful launch of lisdexamfetamine products and strong performance in their existing product lines, resulting in a 462% rise in operating profits to $21.7 million.

Business Operations and StrategyFinancial Disclosures
Elite Pharmaceuticals to Announce Q1 2026 Results
Neutral
Aug 8, 2025

Elite Pharmaceuticals announced that it will release its first quarter financial results for fiscal year 2026 on August 14, 2025, and will host a conference call on August 15, 2025, to discuss these results and provide a business update. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction.

Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Elite Pharmaceuticals Reports Strong Fiscal Year Performance
Positive
Jun 30, 2025

Elite Pharmaceuticals, Inc. reported a significant financial performance for the fiscal year ended March 31, 2025, with consolidated revenues reaching $84.0 million, marking a 48% increase from the previous year. The company’s operating profits rose by 81% to $19.6 million, driven by the successful launch of lisdexamfetamine products and growth in Elite’s existing product lines.

Financial Disclosures
Elite Pharmaceuticals to Announce FY 2025 Results
Neutral
Jun 23, 2025

Elite Pharmaceuticals announced it will release its financial results for the fiscal year ending March 31, 2025, on June 30, 2025. A conference call will be held on July 1, 2025, to discuss these results and provide a business update, indicating a focus on transparency and stakeholder engagement.

Product-Related AnnouncementsBusiness Operations and StrategyRegulatory Filings and Compliance
Elite Pharmaceuticals Announces Positive Study Results
Positive
Jun 16, 2025

On June 16, 2025, Elite Pharmaceuticals announced positive results from a pivotal bioequivalence study for an undisclosed generic anticoagulant drug, showing it is equivalent to the branded product. This finding is significant as there is currently no generic version on the market, and the branded product has a patent listed in the Orange Book. Elite plans to file an Abbreviated New Drug Application with the FDA, which could impact the market by introducing a generic alternative, pending successful filing, FDA approval, and patent considerations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025