The shares of a Micro-Cap company, specializing in the manufacturing of high-quality products used in the upstream operations of Oil & Gas Exploration & Production and more, hit a 20 percent upper circuit upon receiving a work order from ONGC.
With a market capitalization of Rs. 490 crores on Monday, the shares of United Drilling Tools Ltd hit upper circuit of 20 percent, making a high of Rs. 243.05 per share compared to its previous closing price of Rs. 202.55 per share.
United Drilling Tools Ltd, through a regulatory filing, announced that it has secured a significant order from Oil and Natural Gas Corporation (ONGC) Limited, one of India’s most esteemed Public Sector Undertakings (PSUs) in the oil and gas sector.
It involves the supply of Large Outer Diameter (OD) casing pipes with connectors and is valued at Rs. 107.54 Crores. The execution of this contract is scheduled over a period of approximately nine months.
This development reflects the company’s strong technical capabilities and reinforces the continued trust placed in it by major industry players like ONGC. With the addition of this significant order, the company’s total order book size has now grown to approximately Rs. 250-280 Crores.
United Drilling Tools Ltd is one of the world’s leading manufacturers of high-quality products used in the upstream operations. The company is the manufacturer of Large OD high-performance connectors and casing pipes, wireline winches, gas lift equipment and downhole tools in the world. The production facilities are specially adapted to manufacture standard precision equipment and special tools of international standards as per customer’s particular specifications.
The company reported a revenue of Rs 168 crores in FY25, up by 29.2 percent from its FY24 revenue of Rs 130 crores. Additionally, it reported a net profit growth of 66.67 percent to Rs 15 crores in FY25 from Rs 9 crores in FY24. The stock is currently trading at a P/E of 32.81x as compared to its industry average of 36.58x.
Written by: Rohan Pandey
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