Synopsis:
United Drilling Tools surged by 7 percent after it secured a work order from Oil India Ltd, a publicly listed entity.
The shares of this manufacturer and the sale of Oil Drilling tools and equipment jumped by approximately 7 percent after the company announced securing a key contract from a publicly listed entity worth Rs 18 crore. In this article, we will discuss more about it in detail.
With a market capitalization of Rs 480 crores, the shares of United Drilling Tools Ltd are currently trading at Rs 236 per share, down by 20 percent from its 52-week high of Rs 294.90 per share. In the last six months, the stock has delivered a negative return of 10.43 percent.
On Monday, the company, through a stock exchange filing, announced that it has secured a work order worth Rs 17.64 crore from Oil India Limited. The scope of the work includes the supply of line casing pipe and crossover pipe. The order has to be executed within five months.
Following the order win, the CFO said, “We look forward to further strengthening our partnership with Oil India Limited, as well as expanding our relationships with both Indian and international customers.”
Also Read: Stock Split: Microcap stock jumps 8% after company’s board to consider share split
Financial Highlights
The company reported a revenue of Rs 168 crores in FY25, registering a growth of 29.23 percent from Rs 130 crores in FY24. Net profit also surged by 66.67 percent to Rs 15 crores in FY25 from Rs 9 crores in FY24.
The company delivered an ROE and ROCE of 5.81 percent and 7.78 percent respectively, and is currently trading at a P/E of 31.87x as compared to its industry average of 36.98x.
Striding successfully since 1985, based out of Noida, Uttar Pradesh, India, UDTL is a leading Manufacturer of large OD casing pipe with connector, Wireline & well service equipment, Gas lift equipment, and Downhole Tools.
All the equipment can be supplied with the most reliable designs and quality, and is very competitively priced as compared to other suppliers. As of today, UDTL has 32 registered Trademarks, out of which 24 are registered in India & rest 08 are registered in other Countries.
Written by Satyajeet Mukherjee
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