Dolly Khanna's micro-cap watchlist stock: Multibagger drilling stock received a significant order from ONGC; is now on the radar of ace investors!

The stock is down by 11.13 per cent from its 52-week high of Rs 309 and up by 62.5 per cent from its 52-week low of Rs 169.

The Indian stock market ended the day in green, with the BSE Sensex Index up 1.76 per cent and the NSE Nifty-50 Index up by 1.80 per cent. Out of a total of 4,061 stocks traded, about 2,262 shares have advances, 1,659 have declines and 140 shares are unchanged.

Though the market was in green, this micro-cap stock from the industrials sector was down 0.90 per cent to Rs 274.60 per share with an intraday high of Rs 279.85 and an intraday low of Rs 266.90. The stock is down by 11.13 per cent from its 52-week high of Rs 309 and up by 62.5 per cent from its 52-week low of Rs 169.

The company's market capitalization is over Rs 550 crore, but it also has a debt of Rs 36.7 crore, which amounts to 7 per cent of its current market cap with a PE of 58.2x, an ROE of 4.22 per cent and an ROCE of 6.13 per cent.   

The company's recent virtual Investor's Meet garnered success, with its management team engaging in productive dialogue with renowned investor Dolly Khanna. The platform's seamlessness facilitated insightful exchanges, transcending geographic barriers and showcasing the company's adaptability and commitment to fostering collaboration for strategic growth.

Dolly Khanna is an ace investor with a portfolio worth over Rs 500 crore and holding a total of 18 stocks as of December 2023.

Additionally, from December 2021 to March 2023, an ace investor, Ashish Kacholia owned over 2 per cent stake in the company but in the first quarter (Q1FY24) of the financial year 2023 – 2024, he sold his entire stake in the company.

Earlier, the company secured a major domestic order (Rs 95.8 crore) from ONGC for supplying casing pipes (7081 MT) with connectors for offshore production within 28-42 weeks from its Indian facilities. This success, attributed to engineering excellence and client-focused innovation, positions the company well for further oil & gas projects in India and abroad, especially considering India's high future energy demand despite low per capita consumption. They aim to solidify their position as a trusted oil equipment supplier through continuous R&D and competitive pricing.

The stock name is UNITED DRILLING TOOLS LIMITED.

United Drilling Tools Limited is a leading manufacturer of oil drilling-related equipment in the country. The company has obtained global quality standards for its major products. The company has a market cap of over Rs 550 crore. As of September 30, 2023, the company order book stands at Rs 70 crore and including the above order, the company’s current order book stands at Rs 165.8 crore. From Rs 12.41 to Rs 269.60 per share, the stock gave multibagger returns of over 2,000 per cent in a decade. Investors should keep this micro-cap stock under their watchlist.

Disclaimer: The article is for informational purposes only and not investment advice.