United Drilling Tools Limited (UNIDT) AI Stock Analysis

• Market Cap: ₹3.33B
• Dividend Yield: 0.89%
• Average Volume (3M): 971.00
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.77
• Revenue Growth: -15.39%
• EPS Growth: 8.75%
• Country: IN
• Employees: 186
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 2.69
• 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: 62 Neutral
• Price Target: ₹174.00 ▼(-13.43% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is supported primarily by solid financial fundamentals—strong growth, improving profitability, and low leverage—partly offset by weaker cash conversion and a notable decline in EBIT margin. Technicals are a meaningful headwind, with the stock below major moving averages and negative momentum, while valuation is moderate with a low dividend yield.

Positive Factors

Strong revenue growth

Sustained ~29% top-line growth expands market share and scale in engineered drilling tools. Over 2-6 months this supports stronger aftermarket demand, better capacity utilization and pricing leverage, enabling reinvestment in product development and service capabilities.

Healthy gross and improving net margins

A high gross margin (36.9%) and rising net margin indicate durable product pricing power and effective cost control in manufacturing and services. These margin characteristics support profitability through industry cycles and provide room to absorb input cost volatility while funding service expansion.

Conservative capital structure with positive FCF

Very low leverage and a high equity base reduce refinancing and solvency risk, while positive FCF improves funding flexibility. Together these durable strengths support capex for tooling, aftermarket service investments, and resilience to cyclical downturns over the medium term.

Negative Factors

Sharp decline in EBIT margin

A nearly halved EBIT margin signals structural pressure on core operating profitability, not just one-off items. If persistent, weaker operating margins can limit reinvestment capacity, reduce buffer against cyclical oilfield demand swings, and strain long-term competitiveness.

Moderate cash conversion

Sub-1.0 cash conversion means reported earnings translate only partially into cash. Over months this constrains discretionary spending, heightens sensitivity to working-capital swings, and can limit the pace of aftermarket scaling or timely capex without external funding.

Low return on equity

A modest ROE implies the company generates limited profit per unit equity. With a high equity base, improving asset efficiency or margins is required to boost shareholder returns; otherwise long-term capital allocation may underdeliver relative to peers.

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 primarily makes money by (1) selling engineered drilling tools and related oilfield equipment to upstream oil & gas customers and drilling service providers, and (2) earning service income associated with these tools over their operating life. Key revenue streams include: (a) product revenue from the manufacture and supply of specialized drilling tools used during drilling and completion operations; (b) service/aftermarket revenue from inspection, repair, maintenance, refurbishment, and recertification (where applicable) of tools that are repeatedly deployed in the field and require periodic servicing to meet performance and safety requirements; and (c) project or order-based revenues tied to customer procurement cycles, where revenues are recognized upon supply/delivery and/or completion of contracted services depending on contract terms. The company’s earnings are driven by upstream drilling activity levels (which influence tool demand and utilization), customer capex/opex budgets, and the ability to win repeat orders by meeting performance, reliability, and turnaround-time expectations for tools operating in high-stress downhole environments. Specific details on significant partnerships, customer concentration, or the precise product-wise revenue split are null.

United Drilling Tools Limited Financial Statement Overview

Summary

Strong revenue growth (29.4%) and improving net margin (8.9%) support the score, alongside a conservative balance sheet (debt-to-equity 0.12, equity ratio 78.2%). Offsetting this, EBIT margin fell sharply to 12.4% (from 27.8%), and cash conversion remains moderate (operating cash flow to net income 0.6; FCF to net income 0.38) despite FCF turning positive.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.52B	1.68B	1.30B	1.20B	1.75B	1.43B
Gross Profit	574.26M	620.70M	302.88M	222.43M	922.66M	432.38M
EBITDA	285.32M	276.10M	212.23M	193.13M	747.89M	426.90M
Net Income	152.54M	150.25M	93.80M	102.75M	500.29M	326.98M
Balance Sheet
Total Assets	3.86B	3.38B	3.57B	2.82B	2.81B	2.34B
Cash, Cash Equivalents and Short-Term Investments	33.94M	16.78M	24.94M	22.09M	22.05M	56.56M
Total Debt	302.94M	321.39M	327.36M	50.08M	180.79M	184.89M
Total Liabilities	1.15B	734.12M	1.04B	345.83M	416.39M	400.93M
Stockholders Equity	2.70B	2.64B	2.53B	2.47B	2.40B	1.94B
Cash Flow
Free Cash Flow	76.89M	57.61M	-237.43M	162.49M	2.48M	-198.71M
Operating Cash Flow	98.22M	90.42M	-159.56M	257.05M	64.09M	-47.65M
Investing Cash Flow	-29.92M	-28.23M	-77.42M	93.03M	61.61M	-150.99M
Financing Cash Flow	-64.48M	-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: Positive

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 above the 20-day moving average (MA) of 175.07, above the 50-day MA of 184.52, and above the 200-day MA of 199.82, indicating a bearish trend. The MACD of -4.67 indicates Positive momentum. The RSI at 36.65 is Neutral, neither overbought nor oversold. The STOCH value of 7.14 is Positive, 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	₹5.62B	15.59	―	0.40%	56.33%	160.76%
JINDRILL	68 Neutral	₹13.51B	-12.45	―	0.18%	34.80%	252.88%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
UNIDT	62 Neutral	₹3.33B	18.85	―	0.89%	-15.39%	8.75%
URJA	48 Neutral	₹4.61B	404.42	―	―	33.07%	4.57%
OILCOUNTUB	47 Neutral	₹2.29B	-4.55	―	―	70.45%	35.56%
ABAN	39 Underperform	₹1.44B	0.97	―	―	-5.08%	-7.53%

United Drilling Tools Limited Corporate Events

United Drilling Tools Wins Rs 3.73 Crore Casing Pipe Order from ONGC

United Drilling Tools Limited has received a domestic commercial order from Oil and Natural Gas Corporation Limited to supply large outer diameter casing pipes. The order, valued at about Rs 3.73 crore and to be executed within five to six months, underlines the company’s ongoing role as a key equipment supplier to India’s flagship oil producer and signals continued demand for its drilling products in the domestic energy sector.

The contract falls within the ordinary course of business and does not involve any related-party transactions or promoter-group interests. While modest in size, the deal reinforces United Drilling Tools’ operational pipeline and supports its positioning in the oilfield equipment market at a time when upstream activity by national oil companies remains strategically important for India’s energy security.

United Drilling Tools Announces Newspaper Publication of Postal Ballot Notice

United Drilling Tools Limited has notified the stock exchanges that it has published a notice in the Financial Express and Jansatta regarding a postal ballot dated 14 February 2026, which was dispatched to shareholders on 27 February 2026. The disclosure, made under Regulation 47(3) of SEBI’s Listing Obligations and Disclosure Requirements, ensures regulatory compliance and keeps investors informed about shareholder approval processes conducted through postal ballot.

The company’s communication to BSE and NSE underscores adherence to mandated transparency norms in disseminating corporate actions to the market. By formally recording the newspaper publication of the postal ballot notice, United Drilling Tools supports informed decision-making for stakeholders and reinforces its governance standards in line with listing regulations.

United Drilling Tools Files SEBI Dematerialization Compliance Certificate

United Drilling Tools Limited has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended December 31, 2025, to the stock exchanges. The company’s registrar and share transfer agent, Beetal Financial and Computer Services, confirmed that all securities received for dematerialization during the quarter were duly processed, verified, mutilated and cancelled, and that the corresponding securities are listed on the relevant exchanges, underscoring the company’s adherence to regulatory norms and proper handling of shareholder records.