Risk factor
Very poor trading liquidity
Profitability factor
Greatly overvalued vs peers
About
Oil Country Tubular Limited (OCTL), an Indian company established in 1985 and headquartered in Hyderabad, is a manufacturer and global supplier of vital tubular products for the oil drilling and exploration industry. Its extensive product line includes various drill pipes, such as heavy-weight variants and drill collars, alongside diverse casing and tubing solutions, including high-collapse casing. The company also furnishes a comprehensive array of accessories, from rotary subs, lift plugs, and lifting bails to pup joints, sleeve and welded blade stabilizers, tool joints, couplings, and drill rods. Complementing its manufacturing operations, OCTL offers specialized services like tool joint hardfacing, assembly and disassembly of tool joints, internal plastic coating for drill pipes and tubing, as well as reconditioning, re-threading, and field inspection services for drill pipes, tubing, and casing. It is important to note that Oil Country Tubular Limited is currently undergoing a Corporate Insolvency Resolution Process under the provisions of India's Insolvency and Bankruptcy Code of 2016.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is overvalued on EV/EBITDA, overpriced on P