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Shares of United Drilling Tools Ltd plunged 9 percent intraday on Friday’s first half session, This happened a day after ace investor Ashish Kacholia offloaded part of his stake from the company through open market transactions.
With a market capitalization of Rs 377 crores, United Drilling Tools Ltd. was trading at Rs 184.65 on the NSE at 14:45 hrs, dropping 2.82 percent from the previous close.
Ace investor Ashish Kacholia sold 1.58 lakh equity shares at an average price of Rs 190.49 per share, reducing his stake by 0.78 percent. Prior to the disinvestment, he owned 5.7 lakh shares in the company, representing a 2.81 percent ownership as of March 2023.
After selling out, Ashish Kacholia now owns 4.12 lakh equity shares or 2.03 percent of United Drilling Tools Ltd’s total paid-up capital.
The stock has dropped by 16.83 percent in the last three months, from Rs 223.10 to current levels, and by 59.52 percent in the previous year, from Rs 458.35 to current levels.
United Drilling Tools Ltd is engaged in the manufacturing of downhole tools, handling tools, gas lift equipment, wireline & well service equipment, Company caters to domestic and international clients. The product range of the company includes Wireline Winch Units, Gas Lift Equipments, and Handling Tools.
In terms of financial performance, operational revenue declined by 45% from Rs 40 crore in Q4FY22 to Rs 22 crore in Q4FY23. During the same time period, the company’s net profit declined by 71 percent from Rs 7 crore to Rs 2 crore. The Earnings Per Share for FY23 at 5.03 down from 24.64 in FY22.
Furthermore, Revenue fell by 32% year on year, from Rs 174 crore in FY 21-22 to Rs 119 crore in FY 22-23. Within the same time frame, net profit fell by 80 percent, from Rs 50 crore to Rs 10 crore.
As per the BSE filing, The company has announced the distribution of an interim dividend of 12 percent and a recommended final dividend of 6 percent to its shareholders for FY23.
As of FY23, the promoter owned 74.65 percent of the firm, while retail investors owned 25.04 percent.
Written by Omkar C
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