The shares of the industrial equipment manufacturer gained up to 5 percent after the company bagged a prestigious work order from the supply of a Heavy-Duty Truck-Mounted Dual Drum Hydraulic Wireline unit, worth Rs 13.7 crore.
Price Movement
With a market capitalization of Rs 451.85 crore, the shares of United Drilling Tools Ltd were trading at Rs 222.55 per share, increasing around 3.10 percent as compared to the previous closing price of Rs 215.85 apiece.
Reason for rise
The shares of United Drilling Tools Ltd have seen positive movement after bagging a prestigious work order from Oil India Limited for the supply of a Heavy-Duty Truck-Mounted Dual Drum Hydraulic Wireline Unit with PTO (Power Take-Off), worth Rs 13.7 crore.
Moreover, the procurement of these Winches equipped with Zone 2 Power Packs and specialized electrical systems is a significant step forward. These winches are designed to operate safely in hazardous environments, whereas oil wells with potentially explosive gas leaks.
This order reinforces the company’s position as a trusted provider of advanced oil and gas technology. UDTL has built strong relationships with Indian and global clients, consistently delivering top-tier equipment. The specialized units for down-hole operations will be delivered in 4-6 months.
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.
Also read: Why did the stock market rise today? Important levels to watch
Financial performance
Examine the company’s financial condition, revenue zoomed by 2 percent from Rs 34.04 crore in Q3FY24 to Rs 34.78 crore in Q3FY25, and during the same time frame, net profit magnified by 8.2 percent from Rs 2.42 crore to Rs 2.62 crore.
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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