United Drilling Tools Limited (UNIDT) AI Stock Analysis

• Market Cap: ₹4.15B
• Dividend Yield: 0.6%
• Average Volume (3M): 931.00
• Price to Earnings (P/E): 30.4
• Beta (1Y): 0.69
• Revenue Growth: -10.46%
• EPS Growth: 6.55%
• Country: IN
• Employees: 186
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 1.46
• Shares Outstanding: 20,303,125
• 10 Day Avg. Volume: 1,625
• 30 Day Avg. Volume: 931
• 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

• Rating: 62 Neutral
• Price Target: ₹215.00 ▲(9.72% Upside)

United Drilling Tools Limited shows strong financial performance with robust revenue growth and a solid balance sheet, which are significant strengths. However, technical indicators suggest potential short-term weakness, and the valuation appears high, which may limit upside potential. The absence of earnings call data and corporate events means these factors do not influence the score.

United Drilling Tools Limited Business Overview & Revenue Model

Company Description

United Drilling Tools Limited (UNIDT) is a leading provider of drilling tools and equipment, primarily catering to the oil and gas, mining, and construction industries. With a strong focus on innovation and quality, UNIDT offers a comprehensive range of products, including drill pipes, casing, and subsurface tools, designed to enhance drilling efficiency and safety. The company operates in both domestic and international markets, positioning itself as a trusted partner for clients seeking reliable drilling solutions.

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: Positive
• Last Price: 195.95
• 50DMA: Positive
• 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 Positive. The current price of 195.95 is below the 20-day moving average (MA) of 196.63, below the 50-day MA of 200.16, and below the 200-day MA of 217.32, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 57.91 is Neutral, neither overbought nor oversold. The STOCH value of 58.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	72 Outperform	₹4.14B	23.08	―	0.54%	35.81%	71.41%
JINDRILL	69 Neutral	₹15.87B	6.66	―	0.17%	31.27%	187.19%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
UNIDT	62 Neutral	₹4.15B	30.43	―	0.60%	-10.46%	6.55%
URJA	52 Neutral	₹6.44B	314.91	―	―	33.07%	4.57%
OILCOUNTUB	45 Neutral	₹3.65B	―	―	―	184.61%	46.92%
ABAN	42 Neutral	₹2.42B	-0.27	―	―	9.00%	26.00%

United Drilling Tools Limited Corporate Events

Leadership Change at United Drilling Tools Limited

United Drilling Tools Limited has announced a change in its leadership structure, with Mr. Pramod Kumar Gupta resigning as Managing Director while continuing to serve as Chairman and Non-executive Director. This strategic move, effective from August 12, 2025, reflects the company’s ongoing commitment to maintaining strong leadership and could have implications for its governance and strategic direction.

United Drilling Tools Appoints New Managing Director

United Drilling Tools Limited has announced a change in its leadership, with Mr. Kanal Gupta being appointed as the Managing Director, effective from August 12, 2025, until February 9, 2028. This change is expected to strengthen the company’s leadership, given Mr. Gupta’s extensive experience in business administration, marketing, and operations within the oil and gas industry, potentially enhancing the company’s strategic direction and operational efficiency.

United Drilling Tools Appoints New Independent Director

United Drilling Tools Limited has announced the appointment of Mr. Khitish Kumar Nayak as a Non-Executive Independent Director, effective from August 12, 2025, for a term of five years. Mr. Nayak brings over 36 years of experience in the oil and gas industry, with expertise in project management, production optimization, and business development, which is expected to enhance the company’s strategic direction and governance.

United Drilling Tools Appoints New Secretarial Auditor

United Drilling Tools Limited has announced the appointment of M/s Balraj Sharma & Associates as the Secretarial Auditor of the company, effective from August 12, 2025. This appointment, recommended by the Audit Committee and approved by the Board, is set for a term of two consecutive years, pending approval at the upcoming Annual General Meeting. This strategic move is expected to enhance the company’s compliance and governance framework, thereby potentially strengthening its industry positioning and stakeholder confidence.

United Drilling Tools Appoints New Cost Auditor for FY 2025-26

United Drilling Tools Limited has appointed Ms. Swati Chaturvedi as the Cost Auditor for the financial year 2025-26, following the recommendation of its Audit Committee. This strategic appointment is expected to enhance the company’s financial oversight and compliance, potentially strengthening its market position and operational efficiency.