The shares of the industrial equipment manufacturer gained up to 7 percent after the company bagged a prestigious work order from Vedanta Limited worth Rs 1,486.62 MN.
With a market capitalization of Rs 578.23 crore, the shares of United Drilling Tools Ltd were trading at Rs 283.25 per share, increasing around 3.04 percent as compared to the previous closing price of Rs 274.90 apiece.
Reason for Rise:-
The company shares have seen positive movement after United Drilling Tools Ltd bagged a prestigious work order from Vedanta Limited worth Rs 1,486.62 MN for the supply of Oil Country Tubular Goods (OCTG), including casing, tubing, pup joints, and X-overs, to be delivered over three years.
Moreover, the large order is for the delivery of different sizes of Oil Country Tubular Goods (OCTG) and accessories for offshore and deep basin applications. This substantial order reinforces UDTL’s position in the oil and gas industry and demonstrates Vedanta’s, one of the world’s most known resource firms, confidence in UDTL’s high-quality products and services.
Market Insight:-
The global market for Oil Country Tubular Goods (OCTG) was valued at USD 24.93 billion in 2023 and is projected to increase to USD 46.61 billion by 2032. UDTL has a significant chance to extend its product portfolio and meet future demand due to planned expansion.
Financial performance:-
Examine the company’s financial condition, revenue zoomed by 50 percent from Rs 34.62 crore in Q2FY24 to Rs 51.88 crore in Q2FY25, and during the same time frame, net profit magnified by 86 percent from Rs 2.20 crore to Rs 4.10 crore.
Shareholding pattern:-
In the company’s recent shareholding pattern, the Promoters of the company own 74.65 percent while Retail shareholders own a 24.66 percent stake in the company and Foreign Institutional Investors own a 0.68 percent stake.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 4.15 percent in FY22-23 to 3.70 percent in FY23-24, while the return on capital employed increased from 6.17 percent to 6.44 percent. The net profit margin (NPM) for fiscal year 23-24 is 7.21 percent.
Company Profile:-
United Drilling Tools Limited is an India-based manufacturer of drilling products, which can be used in upstream oil and gas exploration. The Company is the manufacturer of Large outside diameter (OD) high-performance connectors and casing pipes, wireline winches, gas lift equipment, and downhole tools.
Written by:- Abhishek Singh
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