United Drilling Tools Limited (UNIDT) AI Stock Analysis

• Market Cap: ₹4.07B
• Dividend Yield: 0.6%
• Average Volume (3M): 2.28K
• Price to Earnings (P/E): 29.8
• Beta (1Y): 0.72
• Revenue Growth: -10.46%
• EPS Growth: 6.55%
• Country: IN
• Employees: 186
• Sector: Energy
• Sector Strength: 63
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 1.46
• Shares Outstanding: 20,303,125
• 10 Day Avg. Volume: 1,876
• 30 Day Avg. Volume: 2,276
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹227.00
• Price Target Upside: 12.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ₹227.00 ▲(12.07% Upside)

The stock is buoyed by strong financial performance, particularly in revenue growth and a solid balance sheet, which are key strengths. However, technical indicators show some short-term weakness, and the valuation suggests potential overpricing, which are significant factors moderating the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for the company's products and effective market penetration, supporting long-term business sustainability.

Balance Sheet Health

A strong equity position with low leverage enhances financial stability and provides flexibility for future investments or downturns.

Profit Margin Improvement

Improved profit margins reflect better cost management and operational efficiency, contributing to long-term profitability.

Negative Factors

Operational Cost Increase

Rising operational costs can erode profitability and indicate potential inefficiencies, posing a risk to future earnings stability.

Cash Flow Efficiency

Low cash flow efficiency suggests the company may struggle to convert earnings into cash, impacting its ability to fund operations and growth.

Return on Equity

A moderate return on equity indicates potential underperformance in generating returns from shareholders' investments, which could affect investor confidence.

United Drilling Tools Limited Business Overview & Revenue Model

Company Description

United Drilling Tools Limited (UNIDT) is an Indian company specializing in the manufacturing and supply of high-quality tools and equipment for the oil and gas sector. The company operates primarily in the design, production, and distribution of drilling and completion tools, including products such as wireline winches, gas lift valves, and stabilizers. UNIDT serves a broad range of clients globally, providing essential components for efficient exploration and extraction operations in the energy industry.

How the Company Makes Money

United Drilling Tools Limited generates revenue through the production and sale of specialized tools and equipment used in the oil and gas industry. The company's primary revenue streams include the manufacturing of wireline winches, gas lift valves, and other completion tools, which are sold to oil and gas companies around the world. UNIDT benefits from long-term supply contracts and partnerships with major players in the energy sector, ensuring a steady demand for its products. The company also invests in research and development to innovate and improve its offerings, thereby maintaining competitive advantage and driving sales growth.

United Drilling Tools Limited Financial Statement Overview

Summary

United Drilling Tools Limited exhibits strong revenue growth and robust balance sheet with low leverage, making it competitive in the industry. Profit margins have improved but increasing operational costs remain a concern. Cash flow has improved significantly, although there are opportunities for further enhancement in cash generation efficiency.

Income Statement

The company shows a solid gross profit margin of 36.9% for the most recent year, indicating good cost management. The net profit margin has improved significantly to 8.9%, showcasing enhanced profitability. The revenue growth rate from the previous year stands at 29.4%, reflecting strong top-line expansion. However, EBIT margin has decreased to 12.4% from 27.8%, suggesting increased operational costs or reduced operational efficiency, and this is a potential risk going forward.

Balance Sheet

The balance sheet is robust with an equity ratio of 78.2%, indicating a strong equity position. The debt-to-equity ratio of 0.12 is low, highlighting conservative leverage. Return on equity is reasonable at 5.7%, though it has room for improvement. Overall, the company maintains a healthy balance sheet with low leverage and a high equity base, but should focus on boosting return on equity.

Cash Flow

The operating cash flow to net income ratio is 0.6, which could be improved to reflect stronger cash generation from operations. Free cash flow has turned positive at $57.6 million, a substantial improvement from the previous negative figures. However, free cash flow to net income ratio is relatively low at 0.38, indicating opportunities to enhance cash flow efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.80B	1.68B	1.30B	1.20B	1.75B	1.43B
Gross Profit	594.95M	620.70M	487.93M	222.43M	922.66M	432.38M
EBITDA	271.32M	276.10M	212.23M	193.13M	747.89M	426.90M
Net Income	142.51M	150.25M	93.80M	102.75M	500.29M	326.98M
Balance Sheet
Total Assets	0.00	3.38B	3.57B	2.82B	2.81B	2.34B
Cash, Cash Equivalents and Short-Term Investments	37.06M	16.78M	24.94M	22.09M	22.05M	56.56M
Total Debt	0.00	321.39M	327.36M	50.08M	180.79M	184.89M
Total Liabilities	-2.59B	734.12M	1.04B	345.83M	416.39M	400.93M
Stockholders Equity	2.59B	2.64B	2.53B	2.47B	2.40B	1.94B
Cash Flow
Free Cash Flow	0.00	57.61M	-237.43M	162.49M	2.48M	-198.71M
Operating Cash Flow	0.00	90.42M	-159.56M	257.05M	64.09M	-47.65M
Investing Cash Flow	0.00	-28.23M	-77.42M	93.03M	61.61M	-150.99M
Financing Cash Flow	0.00	-72.03M	239.82M	-163.98M	-37.21M	148.31M

United Drilling Tools Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 202.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UNIDT, the sentiment is Negative. The current price of 202.55 is below the 20-day moving average (MA) of 203.30, below the 50-day MA of 212.27, and below the 200-day MA of 226.64, indicating a bearish trend. The MACD of -2.77 indicates Negative momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 41.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:UNIDT.

United Drilling Tools Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JINDRILL	69 Neutral	₹17.45B	7.33		0.16%	31.27%	187.19%
SOUTHWEST	69 Neutral	₹4.16B	23.19		0.54%	35.81%	71.41%
Sector *	65 Neutral	$15.27B	7.59	4.09%	5.23%	3.88%	-62.31%
UNIDT	60 Neutral	₹4.07B	29.83		0.60%	-10.46%	6.55%
URJA	49 Neutral	₹7.38B	378.71		―	66.84%	-22.06%
OILCOUNTUB	45 Neutral	₹4.31B	―		―	184.61%	46.92%
ABAN	41 Neutral	₹2.54B	―		―	19.01%	32.51%