United Drilling Tools Limited (UNIDT) AI Stock Analysis

• Market Cap: ₹4.00B
• Dividend Yield: 0.89%
• Average Volume (3M): 971.00
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.76
• Revenue Growth: -15.39%
• EPS Growth: 8.75%
• Country: IN
• Employees: 186
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 2.83
• Shares Outstanding: 20,303,125
• 10 Day Avg. Volume: 1,249
• 30 Day Avg. Volume: 971
• PEG Ratio: 0.49
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 76.21
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹214.00 ▲(6.47% Upside)

The overall stock score is driven by strong financial performance, particularly in revenue growth and balance sheet strength. However, the high P/E ratio suggests potential overvaluation, and the technical indicators point to a neutral market sentiment. The lack of earnings call data and corporate events leaves the score primarily influenced by financials and valuation.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for UNIDT's products and services, enhancing its market position and supporting future expansion.

Balance Sheet Strength

A strong balance sheet with low leverage provides financial stability and flexibility, allowing UNIDT to invest in growth opportunities and weather economic downturns.

Profit Margin Improvement

Improved profit margins reflect better cost management and operational efficiency, contributing to sustainable profitability and competitive advantage.

Negative Factors

Operational Cost Increase

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

Cash Flow Efficiency

Low cash flow efficiency suggests limited ability to convert earnings into cash, which may constrain reinvestment and growth initiatives.

Return on Equity

A moderate return on equity indicates potential underperformance in generating shareholder value, necessitating strategic improvements to enhance returns.

United Drilling Tools Limited Business Overview & Revenue Model

Company Description

United Drilling Tools Limited manufactures and sells wire line and well service equipment, gas lift equipment, downhole tools, and OD casing pipes and connectors worldwide. The company offers wireline winch units, including slimsplit, flyline, surveyline, truckline, landline, scrapping, and wireline accessories; down hole tools, such as replaceable/interchangeable sleeve stabilizers, integral blade stabilizers, rotary reamers, subs, and lifting subs and plugs; and high-performance connectors. It also provides artificial gas lift equipment comprising wireline retrievable gas lift valves, orifice valves, side pocket mandrels, dummy and equalizing valves, latches, standing valves and seating nipples, running and pulling tools, conventional casing pressure operated gas lift valves, conventional tubing pressure operated gas lift valves, conventional check valves, and conventional gas lift mandrels, as well as casing pipes with connector. The company serves oil and gas, drilling, and allied industries. United Drilling Tools Limited was incorporated in 1985 and is headquartered in Noida, India.

How the Company Makes Money

UNIDT generates revenue through the sale of its core products, which include high-quality drilling tools and equipment. The primary revenue streams come from direct sales to clients in the oil and gas sector, as well as contracts with mining and construction companies. Additionally, the company may earn income through the provision of services such as equipment rental, maintenance, and repair. Strategic partnerships with major industry players and suppliers enhance UNIDT's market reach and contribute to its financial stability. Furthermore, the company's focus on research and development allows it to continually innovate, attracting new customers and retaining existing ones, thereby bolstering its revenue generation.

United Drilling Tools Limited Financial Statement Overview

Summary

United Drilling Tools Limited demonstrates strong revenue growth and a solid balance sheet with low leverage, positioning it well in the industry. Profit margins have improved, though there is a need to address increasing operational costs. Cash flow has improved significantly, but further enhancements in cash generation efficiency are necessary to support sustainable growth.

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	1.46B	1.68B	1.30B	1.20B	1.75B	1.43B
Gross Profit	559.20M	620.70M	302.88M	222.43M	922.66M	432.38M
EBITDA	258.90M	276.10M	212.23M	193.13M	747.89M	426.90M
Net Income	136.38M	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	16.67M	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	-2.64B	734.12M	1.04B	345.83M	416.39M	400.93M
Stockholders Equity	2.64B	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: 201.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 201 is below the 20-day moving average (MA) of 203.27, below the 50-day MA of 201.42, and below the 200-day MA of 205.87, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 41.50 is Neutral, neither overbought nor oversold. The STOCH value of 34.28 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
SOUTHWEST	71 Outperform	₹5.40B	20.91	―	0.40%	56.33%	160.76%
JINDRILL	66 Neutral	₹15.76B	4.69	―	0.18%	34.80%	252.88%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
UNIDT	65 Neutral	₹4.00B	26.21	―	0.89%	-15.39%	8.75%
URJA	47 Neutral	₹5.72B	279.95	―	―	33.07%	4.57%
OILCOUNTUB	45 Neutral	₹2.81B	-6.92	―	―	70.45%	35.56%
ABAN	39 Underperform	₹1.09B	-0.10	―	―	-5.08%	-7.53%

United Drilling Tools Limited Corporate Events

United Drilling Tools Ltd Secures Rs. 4.05 Crore Equipment Order from ONGC

United Drilling Tools Limited has secured a significant contract from Oil and Natural Gas Corporation Limited (ONGC) worth approximately Rs. 4.05 crore for the supply of Gas Lift Valves and Side Pocket Mandrels, among other equipment. The execution of this order within 3-4 months aligns with the company’s ongoing business operations and strengthens its presence in the domestic oil and gas equipment sector.