United Drilling ToolsNSE:UNIDT +3.92%74 Gross Margin % is 35.71% as of Mar. 2026, which is 5% below its 10-year median of 37.47. GuruFocus rates NSE:UNIDT with a GF Score™ of 74/100 and a GF Value™ of ₹278.15 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 871 Oil & Gas companies, United Drilling Tools ranks better than 64.64% on this metric.
NSE:UNIDT's Gross Margin % is ranked better than 64.64% of 871
companies
in the Oil & Gas industry
Industry Median: 25.7
vs NSE:UNIDT: 35.82
United Drilling Tools had a gross margin of 35.71% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for United Drilling Tools was 0.00% per year.
United Drilling Tools (NSE:UNIDT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
United Drilling Tools had a gross margin of 35.71% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
United Drilling Tools Gross Margin % Related Terms
United Drilling Tools Gross Margin % Historical Data
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The historical data trend for United Drilling Tools's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:UNIDT vs SLB, BKR, HAL: Gross Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, United Drilling Tools's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
United Drilling Tools Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, United Drilling Tools's Gross Margin % distribution charts can be found below:
* The bar in red indicates where United Drilling Tools's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
United Drilling Tools (NSE:UNIDT) has a Gross Margin % of 35.71% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on United Drilling Tools and its competitors. This is near median its historical median of 37.47. Over the past decade, United Drilling Tools' Gross Margin % has ranged from 31.88 to 61.38. According to the industry distribution chart, United Drilling Tools ranks #308 out of 871 companies in the Oil & Gas industry, placing it in the top 35.4%.
Is United Drilling Tools' Gross Margin % too high?
United Drilling Tools' current Gross Margin % of 35.71% is near median its 10-year median of 37.47. Over the past 10 years, this metric has ranged from a low of 31.88 to a high of 61.38. The Oil & Gas industry median Gross Margin % is 25.70. United Drilling Tools' value of 35.71% is 38.9% above this industry median. Based on the distribution chart, United Drilling Tools ranks #308 out of 871 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, United Drilling Tools has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does United Drilling Tools' Gross Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, United Drilling Tools ranks #308 out of 871 companies for Gross Margin %. This puts United Drilling Tools in the upper half of its industry. The industry median Gross Margin % is 25.70. United Drilling Tools' value of 35.71% is 38.9% above this benchmark. Historically, United Drilling Tools' own Gross Margin % has ranged from 31.88 to 61.38 over the past decade. While the company's 10-year median is 37.47 vs. the industry median of 25.70, United Drilling Tools has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.70, based on 871 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Drilling Tools's current Gross Margin % of 35.71% is 38.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on United Drilling Tools and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Drilling Tools's current Gross Margin % is 35.71%, which is near median its own 10-year median of 37.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Drilling Tools stock overvalued right now?
Based on GuruFocus' analysis, United Drilling Tools (NSE:UNIDT) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹278.15, compared to a current price of ₹222.69 — trading 19.9% below its estimated fair value. The current Gross Margin % is 35.71%, which is near median its 10-year median of 37.47 and 38.9% above the Oil & Gas industry median of 25.70. United Drilling Tools' overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For United Drilling Tools (NSE:UNIDT), the current Gross Margin % is 35.71% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is United Drilling Tools (NSE:UNIDT) Overvalued in 2026?
Based on GuruFocus' analysis, United Drilling Tools stock appears to be undervalued.
The current stock price of ₹222.69 is trading 19.9% below its estimated GF Value™ of ₹278.15.
GuruFocus considers United Drilling Tools to be Modestly Undervalued.
Key valuation signals for NSE:UNIDT:
Gross Margin %: 35.71% (near median its 10-year median of 37.47)
GF Value™: ₹278.15 vs. price of ₹222.69 (19.9% below fair value)
Industry Position: 38.9% above the Oil & Gas median (#308 of 871)
No single metric tells the full story. See the NSE:UNIDT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Drilling Tools Ltd is a manufacturer of Oilfield Equipment. Its product profile includes Wireline Winch Units, Artificial Gas Lift Equipment, Connectors, Down Hole Tools, and Casing Pipe with Connectors. The company operates in domestic as well as international markets.
74GF Score
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