United Drilling Tools Ltd (UNIDT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lokesh Mach.

United Drilling

Mazda

Batliboi

Fluidomat

Intl. Conveyors

Stovec Inds.

Kalyani Cast-Tec

Captain Techno.

Megatherm Indu.

GP Eco Solutions

Why is United Drilling Tools Ltd ?

Company has a low Debt to Equity ratio (avg) at 0.06 times

Poor long term growth as Net Sales has grown by an annual rate of 6.85% and Operating profit at 3.67% over the last 5 years

Positive results in Dec 25

PAT(Latest six months) At Rs 11.22 cr has Grown at 65.24%
NET SALES(Latest six months) At Rs 106.13 cr has Grown at 28.27%
OPERATING PROFIT TO INTEREST(Q) Highest at 10.23 times

With ROCE of 6.9, it has a Very Attractive valuation with a 1.5 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.43%, its profits have risen by 26.8% ; the PEG ratio of the company is 0.8

Majority shareholders : Promoters

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.43% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to United Drilling should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is United Drilling for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

United Drilling

-6.43%

-0.14

44.43%

Sensex

1.03%

0.07

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.85%

EBIT Growth (5y)

3.67%

EBIT to Interest (avg)

9.29

Debt to EBITDA (avg)

0.81

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.52

Tax Ratio

23.95%

Dividend Payout Ratio

24.32%

Pledged Shares

Institutional Holding

0.43%

ROCE (avg)

11.02%

ROE (avg)

6.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.51

EV to EBIT

17.81

EV to EBITDA

14.99

EV to Capital Employed

1.46

EV to Sales

2.59

PEG Ratio

0.84

Dividend Yield

0.89%

ROCE (Latest)

6.94%

ROE (Latest)

5.64%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

PAT(Latest six months)

At Rs 11.22 cr has Grown at 65.24%

NET SALES(Latest six months)

At Rs 106.13 cr has Grown at 28.27%

OPERATING PROFIT TO INTEREST(Q)

Highest at 10.23 times

-4What is not working for the Company

INTEREST(9M)

At Rs 3.02 cr has Grown at 40.47%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.41 times

Loading Valuation Snapshot...

Here's what is working for United Drilling

Profit After Tax (PAT) - Latest six months

At Rs 11.22 cr has Grown at 65.24%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 10.23 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

At Rs 50.53 cr has Grown at 32.7% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 38.07 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for United Drilling

Interest - Nine Monthly

At Rs 3.02 cr has Grown at 40.47%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 1.41 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio