BSE:522014

Stock Analysis Report

United Drilling Tools

Executive Summary

United Drilling Tools Limited manufactures and sells wire line and well service equipment, gas lift equipment, downhole tools, and OD casing connectors worldwide.

Snowflake

Fundamentals

Flawless balance sheet with outstanding track record.

Share Price & News

How has United Drilling Tools's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

12.2%

522014

7.2%

IN Energy Services

3.9%

IN Market


1 Year Return

-34.3%

522014

-7.7%

IN Energy Services

6.0%

IN Market

Return vs Industry: 522014 underperformed the Indian Energy Services industry which returned -7.7% over the past year.

Return vs Market: 522014 underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

522014IndustryMarket
7 Day12.2%7.2%3.9%
30 Day4.0%3.9%7.8%
90 Day7.9%-15.3%2.5%
1 Year-32.9%-34.3%-6.8%-7.7%8.2%6.0%
3 Year10.0%6.3%-31.7%-33.3%23.0%16.7%
5 Year181.5%172.1%-11.4%-13.0%43.5%30.0%

Price Volatility Vs. Market

How volatile is United Drilling Tools's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is United Drilling Tools undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 522014 (₹82.1) is trading below our estimate of fair value (₹550.6)

Significantly Undervalued: 522014 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 522014 is poor value based on its PE Ratio (5.5x) compared to the Energy Services industry average (5.2x).

PE vs Market: 522014 is good value based on its PE Ratio (5.5x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 522014's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 522014 is overvalued based on its PB Ratio (1.3x) compared to the IN Energy Services industry average (0.8x).


Next Steps

Future Growth

How is United Drilling Tools forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 522014's forecast earnings growth (3.7% per year) is below the savings rate (7.6%).

Earnings vs Market: 522014's earnings (3.7% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: 522014's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 522014's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 522014's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 522014's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has United Drilling Tools performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 522014's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: 522014's earnings growth over the past year (82.4%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: 522014 earnings growth over the past year (82.4%) exceeded the Energy Services industry 62.1%.


Return on Equity

High ROE: 522014's Return on Equity (23.2%) is considered high.


Return on Assets

ROA vs Industry: 522014 has a higher Return on Assets than the Energy Services industry average last year.


Return on Capital Employed

ROCE Improving: 522014 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is United Drilling Tools's financial position?


Financial Position Analysis

Short Term Liabilities: 522014's short term assets (₹657.5M) exceeds its short term liabilities (₹122.9M)

Long Term Liabilities: 522014's short term assets (657.5M) exceeds its long term liabilities (49.3M)


Debt to Equity History and Analysis

Debt Level: 522014's debt to equity ratio (0.2%) is considered satisfactory

Reducing Debt: 522014's debt to equity ratio has reduced from 14.3% to 0.2% over the past 5 years.

Debt Coverage: 522014's debt is well covered by operating cash flow (37731%).

Interest Coverage: 522014's interest payments on its debt are well covered by EBIT (47.9x coverage).


Balance Sheet

Inventory Level: 522014 has a high level of physical assets or inventory.

Debt Coverage by Assets: 522014's debt is covered by short term assets (assets are 285.378900x debt).


Next Steps

Dividend

What is United Drilling Tools's current dividend yield, its reliability and sustainability?

1.46%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%0.6%markettop25%2.4%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 522014's dividend (1.46%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 522014's dividend (1.46%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).

Stable Dividend: Whilst dividend payments have been stable, 522014 has been paying a dividend for less than 10 years.

Growing Dividend: 522014's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8%), 522014's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of United Drilling Tools's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Pramod Gupta (71yo)

33.8yrs

Tenure

₹8,400,000

Compensation

Mr. Pramod Kumar Gupta M.S.I.E. PE. (USA) has been the Chairman and Managing Director of United Drilling Tools Ltd. since 1986. Mr. Gupta served as Company Secretary of DB International Stock Brokers Ltd.  ...


CEO Compensation Analysis

Compensation vs. Market: Pramod's total compensation ($USD118.18K) is about average for companies of similar size in the Indian market ($USD29.55K).

Compensation vs Earnings: Pramod's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.2yrs

Average Tenure

50yo

Average Age

Experienced Management: 522014's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

65yo

Average Age

Experienced Board: 522014's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Pramod Gupta (71yo)

    Chairman & MD

    • Tenure: 33.8yrs
    • Compensation: ₹8.40m
  • Kanal Gupta (37yo)

    Whole Time Director

    • Tenure: 4.7yrs
    • Compensation: ₹4.79m
  • Pramod Ojha

    Company Secretary & Compliance Officer

    • Tenure: 0yrs
  • Arun Thakur

    Chief Financial Officer

    • Tenure: 4.2yrs
  • Inderpal Sharma (50yo)

    Whole-Time Director

    • Tenure: 2.9yrs
    • Compensation: ₹592.27k

Board Members

  • Pramod Gupta (71yo)

    Chairman & MD

    • Tenure: 33.8yrs
    • Compensation: ₹8.40m
  • Shiv Sharan Bhagat (86yo)

    Non-Executive Independent Director

    • Tenure: 21yrs
    • Compensation: ₹220.00k
  • Krishan Aggarwal (76yo)

    Independent & Non Executive Director

    • Tenure: 13.1yrs
    • Compensation: ₹190.00k
  • Kanal Gupta (37yo)

    Whole Time Director

    • Tenure: 4.7yrs
    • Compensation: ₹4.79m
  • Pandian Kalyanasundaram (65yo)

    Non-Executive Independent Director

    • Tenure: 3.4yrs
    • Compensation: ₹220.00k
  • Twinkle Singh (26yo)

    Independent Woman Director

    • Tenure: 2.4yrs
    • Compensation: ₹220.00k
  • Inderpal Sharma (50yo)

    Whole-Time Director

    • Tenure: 2.9yrs
    • Compensation: ₹592.27k

Company Information

United Drilling Tools Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Drilling Tools Limited
  • Ticker: 522014
  • Exchange: BSE
  • Founded: 1985
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: ₹1.667b
  • Shares outstanding: 20.30m
  • Website: https://www.udtltd.com

Number of Employees


Location

  • United Drilling Tools Limited
  • A-22, Phase-II
  • Gautam Budh Nagar
  • Noida
  • Uttar Pradesh
  • 201305
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
522014BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

Biography

United Drilling Tools Limited manufactures and sells wire line and well service equipment, gas lift equipment, downhole tools, and OD casing connectors worldwide. The company offers wireline winch units, i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 12:34
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.