United Drilling Tools Dip 6% As Ashish Kacholia Trims Stake Via Bulk Deal

A small-cap industrial manufacturing company is United Drilling Tools. India's top producer of oilfield drilling, production, and exploration tools and equipment is United Drilling Tools Limited. The shares of United Drilling Tools opened at Rs 189.00 apiece on Friday and went downwards to Rs 179.05 logging a fall of 5.55%. The stock hit an intraday-low of Rs 169.00 and intraday high of Rs 192.50 while writing this copy. In the past five trading sessions, the stock has declined 11.81%. After renowned investor Ashish Kacholia reduced his stake in the small-cap firm, the stock has been in a downward trend.

According to the bulk data deal of June 8 available on NSE website, Ashish Kacholia sold 1,58,390 shares at a price of Rs 190.49 per share of United Drilling Tools. Ashish Kacholia held 5,70,817 shares, or 2.81 percent stake in United Drilling Tools Ltd, according to the company's shareholding pattern for the quarter from January to March 2023. Promoter Gateway Distriparks bought an additional 14 lakh shares in logistics firm Snowman Logistics at an average price of Rs 43.32 per share, among other bulk deal transactions of June 8.

After offloading 1,58,390 shares, there are now 4,12,427 shares remaining or 2.03% stake of United Drilling Tools Ltd.'s entire paid up capital in his portfolio. This indicates that Ashish Kacholia sold out his 0.78 percent shareholding of United Drilling Tools for a total of Rs 3.01 crore via a recent bulk deal.

United Drilling Tools reported revenue from operations of Rs 22.42 cr in Q4FY23, which is a drop of 44.78% YoY from Rs 40.60 cr in Q4FY22. Its net profit for the quarter ended in March 2023 was Rs. 2.85 crore, down 60.2% YoY from the Rs. 7.17 cr recorded for the quarter ended in March 2022. From Rs. 3.44 in March 2022 to Rs. 1.38 in March 2023, United Drilling's earnings per share have dipped.

The shares of United Drilling Tools have fallen 60.31% in 1 year and 31.24% on a YTD basis. The stock touched a 52-week-high of Rs 463.20 on (10/06/2022) and a 52-week-low of Rs 169.00 on (09/06/2023). Commenting on the outlook of the stock, A R Ramachandran, Co-founder & Trainer-Tips2trades said "United Drilling Tools looks bearish on the Daily charts with next support at 154. Till a Daily close above resistance of 190 is not achieved, investors should avoid buying this stock."