United Drilling Tools Limited (UNIDT) AI Stock Analysis

United Drilling Tools Limited

(NSE:UNIDT)

Select Model

Rating:69Neutral

Price Target:INR 189.00▲(6.48% Upside)

Action:downgraded

Date:10/02/26

Solid balance sheet with equity growth to 2.80 billion and revenue recovery primarily drive the score, reinforced by bullish technical signals from price above all moving averages and positive MACD. Fair P/E valuation provides moderate support but low dividend yield limits overall appeal.

Positive Factors

Very Low LeverageMinimal leverage reduces financial risk and interest-related pressure, preserving flexibility to fund equipment development, customer support, and expansion internally. A substantial equity base should also help United Drilling Tools absorb cyclical changes in upstream drilling demand without relying heavily on external financing.

Negative Factors

Margin CompressionLower gross margins suggest that the recent sales recovery is not translating into peak profitability, potentially reflecting less favorable product mix or cost pressure. Persistent compression would limit operating leverage, reduce earnings conversion from growth, and constrain internally funded investment.

United Drilling Tools Limited (UNIDT) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 3.70B
Dividend Yield: 1.01%
Average Volume (3M): 3,832
Price to Earnings (P/E): 17.6
Beta (1Y): 1.02
Revenue Growth: 26.40%
EPS Growth: 48.98%
Country: India
Employees: 148
Sector: General
Sector Strength: 55
Industry: Oil & Gas Equipment & Services

United Drilling Tools Limited Business Overview & Revenue Model

Company Description

United Drilling Tools Limited, together with its subsidiary, manufactures and sells OD connectors and casing pipes, wireline winches, gas lift equipments, and downhole tools under the UDT brand in India and internationally. The company offers, such a...

How the Company Makes Money

UNIDT primarily makes money by selling drilling tools and related equipment to customers involved in oil & gas drilling operations (such as exploration and production companies and drilling contractors). A second source of revenue comes from providin...

United Drilling Tools Limited Financial Statement Overview

Summary

Revenue shows strong recovery with 29% growth in 2025 and 19% in 2026 after a 31% dip in 2023, supported by a solid balance sheet with low debt-to-equity ratios under 0.13 and equity growth to 2.80 billion. Cash flow volatility and declining margins from 29% to 10% highlight risks in the oil and gas sector.

Income Statement

65Positive

Balance Sheet

85Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.84B	1.81B	1.68B	1.30B	1.20B	1.75B
Gross Profit	546.15M	474.90M	620.70M	302.88M	222.43M	922.66M
EBITDA	352.82M	349.45M	276.10M	212.23M	193.13M	747.89M
Net Income	203.18M	189.70M	150.25M	93.80M	102.75M	500.29M
Balance Sheet
Total Assets	0	3.08B	3.38B	3.57B	2.82B	2.81B
Cash, Cash Equivalents and Short-Term Investments	16.05M	16.05M	16.78M	24.94M	22.09M	22.05M
Total Debt	0	32.26M	321.39M	327.36M	50.08M	180.79M
Total Liabilities	-2.80B	282.38M	734.12M	1.04B	345.83M	416.39M
Stockholders Equity	2.80B	2.80B	2.64B	2.53B	2.47B	2.40B
Cash Flow
Free Cash Flow	76.89M	325.70M	57.61M	-237.43M	162.49M	2.48M
Operating Cash Flow	98.22M	369.44M	90.42M	-159.56M	257.05M	64.09M
Investing Cash Flow	-29.92M	-42.84M	-28.23M	-77.42M	93.03M	61.61M
Financing Cash Flow	-64.48M	-326.32M	-72.03M	239.82M	-163.98M	-37.21M

United Drilling Tools Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price177.49

Price Trends

50DMA215.28Negative

100DMA220.40Negative

200DMA208.06Negative

Market Momentum

MACD-12.60Positive

RSI37.27Neutral

STOCH27.48Neutral

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 177.49 is below the 20-day moving average (MA) of 198.09, below the 50-day MA of 215.28, and below the 200-day MA of 208.06, indicating a bearish trend. The MACD of -12.60 indicates Positive momentum. The RSI at 37.27 is Neutral, neither overbought nor oversold. The STOCH value of 27.48 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:UNIDT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:JINDRILL	83Outperform	INR 14.37B	7.73	―	0.20%	11.72%	-19.52%
IN:SEAMECLTD	73Outperform	INR 41.19B	16.34	―	0.12%	60.32%	122.30%
IN:UNIDT	69Neutral	INR 3.50B	17.60	―	1.01%	26.40%	48.98%
IN:DOLPHIN	63Neutral	INR 24.28B	34.27	―	―	79.91%	41.97%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:OILCOUNTUB	50Neutral	INR 3.62B	-5.29	―	―	-48.59%	-96.17%
IN:ABAN	45Neutral	INR 842.21M	-0.43	―	―	-0.26%	78.73%

* General Sector Average

Performance Comparison

IN:UNIDT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:UNIDT	United Drilling Tools Limited	179.00	-23.44	-11.58%
IN:ABAN	Aban Offshore Limited	14.45	-24.28	-62.69%
IN:DOLPHIN	Dolphin Offshore Enterprises India Ltd.	613.75	202.05	49.08%
IN:JINDRILL	Jindal Drilling & Industries Ltd.	511.35	-70.81	-12.16%
IN:OILCOUNTUB	Oil Country Tubular Limited	69.77	4.33	6.62%
IN:SEAMECLTD	SEAMEC Limited	1627.75	763.82	88.41%

United Drilling Tools Limited Corporate Events

United Drilling Tools releases FY 2025-26 annual report and schedules virtual AGM

Sep 1, 2026

United Drilling Tools Limited has released its Annual Report for the financial year 2025-26, which includes the notice for its 44th Annual General Meeting scheduled on September 23, 2026, to be held via video conferencing and other audio-visual means...

United Drilling Tools Reappoints A P U & Company as Statutory Auditor for Four-Year Term

Aug 10, 2026

United Drilling Tools Limited has announced that its board, following the audit committee’s recommendation, has approved the re-appointment of M/s A P U & Company as statutory auditors for a second term. The firm, which has 22 years of expe...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 02, 2026

United Drilling Tools Limited AI Stock Analysis