United Drilling Tools Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Position and Healthy Growth

United Drilling Tools, a microcap engineering company, has recently received a 'Hold' rating from MarketsMOJO on July 16, 2024. This upgrade is based on the company's high management efficiency, with a ROE of 19.13%. Additionally, the company has a low Debt to Equity ratio of 0.05 times, indicating a strong financial position.
The company has also shown healthy long-term growth, with its Net Sales growing at an annual rate of -3.26% and Operating profit at 64.34%. Its PBT LESS OI(Q) has grown at an impressive rate of 91.9%, with the highest NET SALES(Q) and PBDIT(Q) at Rs 42.76 cr and Rs 6.33 cr respectively.

Technically, the stock is currently in a Mildly Bullish range and has shown improvement from a Mildly Bearish trend on July 16, 2024. The Bollinger Band, a key technical factor, has been Bullish since then.

However, with a ROCE of 4.2, the stock is currently trading at a Very Expensive valuation with a 2 Enterprise value to Capital Employed. It is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 18.22%, but its profits have fallen by -9.7%.

It is worth noting that despite its small size, domestic mutual funds hold only 0% of the company. This could signify that they are not comfortable with the current price or the business, as they have the capability to conduct in-depth research on companies.

In the last year, the stock has underperformed the market, generating a return of 18.22% compared to the market's (BSE 500) return of 37.74%. Investors should carefully consider these factors before making any investment decisions regarding United Drilling Tools.