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INVESTMENT INSIGHTS

Check Before You Invest : United Drilling Tools Ltd

BSE: 522014 NSE: UNIDT ISIN: INE961D01019
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does United Drilling Tools Ltd belong to?
United Drilling Tools Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is United Drilling Tools Ltd a good quality company?
United Drilling Tools Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is United Drilling Tools Ltd undervalued or overvalued?
United Drilling Tools Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is United Drilling Tools Ltd a good buy now?
United Drilling Tools Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of United Drilling Tools Ltd?
United Drilling Tools Ltd revenue growth is 26% for FY-2025 , which is above its 5 year CAGR of 9% , indicating faster growth.
Q.2 Gross Profit margin of United Drilling Tools Ltd?
United Drilling Tools Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.7% for FY-2025 , which is below its 5 year median of 14.8% , indicating decreasing margins.
Q.3 Operating Profit Margin of United Drilling Tools Ltd?
United Drilling Tools Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.56% for FY-2025 , which is below its 5 year median of 14.13% indicating decreasing margins.
Q.4 Net Profit Margin of United Drilling Tools Ltd?
United Drilling Tools Ltd Net Profit Margin is 8.67% for FY-2025 , is in line with with its 5 year median of 8.67%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 13.7 14.8
Operating Profit Margin 13.56 14.13
Net Profit Margin 8.67 8.67
Q.5 Return on Asset of United Drilling Tools Ltd?
United Drilling Tools Ltd Return on Asset is 4.32%, which is in line with its 5 year historical median of 4.32%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of United Drilling Tools Ltd?
United Drilling Tools Ltd Return on equity is 5.79% for FY-2025 , which is in line with its historical median of 5.79%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of United Drilling Tools Ltd?
United Drilling Tools Ltd Return on capital employed is 7.72% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of United Drilling Tools Ltd?
United Drilling Tools Ltd Cash conversion cycle is 401 days, above its historical median of 401 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.5 0.5
ROE 5.79 5.79
ROCE 7.72 7.72
Cash Conversion Cycle 401 days 401 days
Q.9 Debt to Equity ratio of United Drilling Tools Ltd?
United Drilling Tools Ltd Debt-to-Equity ratio is 0.12 , which is lower with the industry average of 0.17 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of United Drilling Tools Ltd?
United Drilling Tools Ltd Debt to cash flow from operations is 3.76 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of United Drilling Tools Ltd?
Promoters hold 74.65% of the United Drilling Tools Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of United Drilling Tools Ltd vs industry peers?
United Drilling Tools Ltd revenue CAGR is 9.03% , compared to the industry median CAGR of 1.47% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 172.2 101.1
Gross Profit 23.6 9.6
Operating Profit 23 9
Net Profit 15 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.5 0.89
ROE 5.79 11.68
ROCE 7.72 14.29
Cash Conversion Cycle (days) 400.98 101

Valuation & price assessment

Q.1 Stock return of United Drilling Tools Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 23% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 23% -7.1% -3.5% -2.6%
Q.3 Valuation ratios of United Drilling Tools Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 23.31 13.24 46.24
Price to Book 1.53 2.82 2.79
Price to Sales 2.48 4.22 2.66
EV to EBITDA 14.18 10.25 15.72

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