Stock Performance and Market Context
The stock has been on a downward trajectory, falling by 2.08% over the last two trading sessions. Today’s decline of 1.71% further extended this trend, underperforming its sector by 1.26%. Trading within a narrow range of Rs.1.2, the share price remains below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — signalling sustained bearish momentum.
On the broader market front, the Sensex opened lower at 81,436.79, down 100.91 points (-0.12%), and was trading at 81,492.22 (-0.06%) during the session. The index has experienced a three-week consecutive decline, losing 2.49% in this period. Notably, other indices such as NIFTY MEDIA and NIFTY REALTY also hit new 52-week lows today, reflecting a cautious market environment.
While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying resilience in the broader market despite recent weakness.
Financial Performance and Valuation Metrics
United Drilling Tools Ltd’s one-year stock performance has been disappointing, with a return of -27.92%, significantly lagging the Sensex’s positive 8.11% gain over the same period. The stock’s 52-week high was Rs.275, highlighting the extent of the recent decline.
Long-term financial trends reveal subdued growth. Net sales have contracted at an annual rate of -2.47% over the past five years, while operating profit has declined at an even steeper annual rate of -17.71%. The company’s results for the September 2025 period were largely flat, offering little indication of a turnaround.
Interest expenses for the nine months ended September 2025 rose sharply by 117.53% to Rs.3.35 crores, exerting additional pressure on profitability. Dividend per share remains at a low Rs.1.80 annually, reflecting restrained shareholder returns. The debtors turnover ratio for the half year stands at 1.41 times, one of the lowest in recent periods, suggesting slower collection cycles.
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Relative Performance and Ratings
The stock has consistently underperformed its benchmark indices over the past three years, failing to keep pace with the BSE500 in each annual period. This persistent underperformance is reflected in its current Mojo Score of 40.0 and a Mojo Grade of Sell, which was downgraded from Strong Sell on 10 Nov 2025.
Despite these challenges, the company maintains a low average debt-to-equity ratio of 0.06 times, indicating limited leverage. Its return on capital employed (ROCE) stands at 6.9%, and the enterprise value to capital employed ratio is 1.4, suggesting a valuation that is attractive relative to its capital base.
Profitability has shown some improvement, with profits rising by 8.7% over the past year, although this has not translated into positive stock returns. The company’s price/earnings to growth (PEG) ratio is 2.9, indicating that earnings growth is not currently reflected favourably in the share price.
Shareholding and Industry Position
Promoters remain the majority shareholders, maintaining control over the company’s strategic direction. United Drilling Tools Ltd operates within the Industrial Manufacturing sector, a space that has faced mixed performance amid broader economic fluctuations.
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Summary of Key Metrics
To summarise, United Drilling Tools Ltd’s stock has reached a new 52-week low of Rs.183.8, reflecting a combination of subdued sales growth, declining operating profits, rising interest costs, and consistent underperformance relative to market benchmarks. The stock’s technical indicators remain weak, trading below all major moving averages, while the broader market environment has also been challenging.
Valuation metrics suggest the stock is trading at a discount compared to peers, supported by a low debt burden and moderate ROCE. However, the company’s financial performance over recent years has been lacklustre, with limited growth and profitability pressures evident in the latest results.
Investors monitoring this stock will note the persistent downward trend and the challenges reflected in both fundamental and technical indicators as of 27 Jan 2026.
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