Is United Drilling Tools the Best Stock in Its Sector? A Look at the Numbers
- October 9, 2026
- Posted by: Chaitanya Auti
- Category: Market
United Drilling Tools CMP Rs 226 (09 Oct 2026). Market cap Rs 455 Cr. ROE 6.78%. P/E 22.41x versus Industry P/E 47.18x.
Quick Answer
United Drilling Tools is one of the names investors compare when screening the Capital Goods sector, built on a 6.78% return on equity and a P/E of 22.41x against an Industry P/E of 47.18x. Whether United Drilling Tools is the best stock in its sector depends on whether an investor is optimising for return ratios, valuation, or both. This article breaks down the metrics, including a comparison against named Capital Goods sector peers, so you can judge that for yourself.
Is United Drilling Tools the best stock in its sector? The stock trades on the NSE at Rs 226 as of 09 October 2026, within its 52-week range of Rs 146.00 to Rs 272.00. United Drilling Tools Ltd, incorporated in 1985, makes oil drilling tools including casing connectors, wireline winches and gas-lift tools.
United Drilling Tools sits in the Capital Goods sector, and its 6.78% ROE and 22.41x P/E give a starting point for judging where it stands against comparable listed names. The rest of this article compares those numbers against verified peers and the sector’s Industry P/E benchmark.
Also read – Is Abbott India the Best Stock in Its Sector? A Look at the Numbers
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About United Drilling Tools
United Drilling Tools Ltd, incorporated in 1985, makes oil drilling tools including casing connectors, wireline winches and gas-lift tools. It received an Oil India order worth Rs 17.6 Cr in July 2025. The stock trades about 17 percent below its 52-week high and about 55 percent above its 52-week low. At a market capitalisation of Rs 455 Cr, it is tracked as part of the Capital Goods sector on Univest.
Is United Drilling Tools the Best Stock in Its Sector?
United Drilling Tools’ case rests on valuation rather than returns. United Drilling Tools’ 22.41x P/E is below the 47.18x Industry P/E and the balance sheet carries almost no debt, but a 6.78% ROE is modest and a Rs 455 Cr market capitalisation makes it a small company.
| Metric | United Drilling Tools |
|---|---|
| CMP (NSE) | Rs 226.32 |
| 52-Week High / Low | Rs 272.00 / Rs 146.00 |
| Market Cap | Rs 455 Cr |
| P/E (TTM) vs Industry P/E | 22.41x vs 47.18x |
| P/B | 1.63 |
| ROE | 6.78% |
| EPS (TTM) | Rs 10.01 |
| Dividend Yield | 0.27% |
| Debt to Equity | 0.01 |
Compare United Drilling Tools Against Other Capital Goods Sector Stocks
How United Drilling Tools Compares Against Its Capital Goods Sector Peers
The table below sets United Drilling Tools against 2 other Capital Goods sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.
| Company | Market Cap (Rs Cr) | P/E | ROE | Debt to Equity |
|---|---|---|---|---|
| United Drilling Tools | 455 | 22.41 | 6.78% | 0.01 |
| Deep Industries | 4,969 | 22.13 | 19.42% | 0.10 |
| Asian Energy Services | 2,248 | 38.12 | 11.70% | 0.32 |
| Peer average (2 companies) | – | 30.12 | 15.56% | 0.21 |
Against this peer set, United Drilling Tools’s 6.78% ROE is below the 15.56% peer average, and its P/E of 22.41x runs below the peer average of 30.12x. United Drilling Tools’ 22.41x P/E is below the 47.18x Industry P/E and the balance sheet carries almost no debt, but a 6.78% ROE is modest and a Rs 455 Cr market capitalisation makes it a small company.
What Makes United Drilling Tools Worth Watching in Capital Goods
- Discount to industry: A 22.41x P/E against a 47.18x Industry P/E is a clear gap.
- Almost no debt: A debt to equity ratio of 0.01 leaves the balance sheet clean.
- Order dependence: Oil India’s Rs 17.6 Cr order shows the order driven nature of the business.
United Drilling Tools Valuation: Is It Justified?
United Drilling Tools’ 22.41x P/E is below the 47.18x Industry P/E and the balance sheet carries almost no debt, but a 6.78% ROE is modest and a Rs 455 Cr market capitalisation makes it a small company. As with any single stock, investors should weigh this against their own valuation discipline and risk appetite rather than the sector label alone.
Also read – Is Total Transport Systems the Best Stock in Its Sector? A Look at the Numbers
Download the Univest iOS App or Univest Android App to track United Drilling Tools and other Capital Goods sector stocks.
How to Track United Drilling Tools Before You Invest
Before deciding whether United Drilling Tools deserves its label as the best stock in its sector for your own portfolio, compare it directly against Capital Goods sector peers using the steps below.
- Open the Univest Screener and search for United Drilling Tools to view live price, valuation ratios, and peer comparisons within the Capital Goods sector.
- Compare its P/E, P/B, and ROE against other Capital Goods sector stocks before deciding if the current valuation fits your strategy.
- Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
- Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.
Conclusion
United Drilling Tools is worth researching mainly on valuation, with a P/E of 22.41x against a 47.18x Industry P/E, but a 6.78% ROE is modest, so the case for calling it the best stock in its sector rests on more than current returns. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Is United Drilling Tools the best stock in its sector?
Ans. United Drilling Tools has a 6.78% ROE and trades at 22.41x P/E against a 47.18x Industry P/E, and compares below the peer average ROE of 15.56% in this article’s named comparison, so the answer depends on what an investor is prioritising.
What is the current share price of United Drilling Tools?
Ans. United Drilling Tools was trading at Rs 226.32 on the NSE as of 09 October 2026, within its 52-week range of Rs 146.00 to Rs 272.00.
What sector does United Drilling Tools belong to?
Ans. United Drilling Tools is classified under the Capital Goods sector on Univest.
How does United Drilling Tools compare to its sector peers on P/E?
Ans. United Drilling Tools’s P/E of 22.41x is below the 30.12x average of the 2 named peers compared in this article.
What is United Drilling Tools’s return on equity?
Ans. United Drilling Tools reported a return on equity of 6.78%, which is below the 15.56% average of its named peers in this comparison.
Should I invest in United Drilling Tools based on its sector position?
Ans. United Drilling Tools’s sector position and metrics make it worth researching further, but any investment decision should factor in your own risk appetite, its valuation relative to peers, and independent research or advice from a SEBI-registered advisor.
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