Price Movement and Market Context
On the day, Deep Industries Ltd’s stock touched an intraday low of Rs.367.4, representing a 2.1% decline from the previous close. The stock has been on a downward trajectory for two consecutive sessions, cumulatively falling by 2.81% over this period. Despite this, it marginally outperformed the Oil sector by 0.72% on the day. The current price is substantially below the stock’s 52-week high of Rs.595, reflecting a year-long depreciation of 36.64% compared to the Sensex’s positive return of 8.37% over the same period.
Deep Industries is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex, despite a recent three-week decline of 3.21%, remains only 3.8% shy of its 52-week high of 86,159.02 points. The Sensex’s 50-day moving average remains above its 200-day moving average, indicating a longer-term positive trend despite short-term weakness.
Valuation and Financial Metrics
Deep Industries currently holds a Mojo Score of 37.0 with a Mojo Grade of Sell, downgraded from Hold on 10 Nov 2025. The company’s market capitalisation grade stands at 3, reflecting its mid-tier size within the Oil sector. The stock’s valuation metrics reveal a Price to Book Value of 1.2, which is considered expensive relative to its peer group’s historical averages. This premium valuation persists despite the stock’s underperformance in the market.
Return on Equity (ROE) is reported at 11%, which, while positive, does not fully justify the elevated valuation. The Price/Earnings to Growth (PEG) ratio is notably low at 0.2, indicating that earnings growth has outpaced the stock price decline. Over the past year, the company’s profits have increased by 53.2%, a substantial rise contrasting with the negative share price movement.
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Shareholding and Market Participation
Despite its size and sector presence, Deep Industries commands a relatively small stake from domestic mutual funds, which hold only 0.13% of the company’s shares. Given that domestic mutual funds typically conduct thorough on-the-ground research, this limited exposure may reflect a cautious stance towards the stock’s current price levels or business outlook.
Operational and Financial Performance Highlights
The company maintains a conservative capital structure with an average Debt to Equity ratio of zero, indicating no reliance on debt financing. This financial prudence is complemented by robust long-term growth, with operating profit expanding at an annualised rate of 55.29%. Deep Industries has reported positive results for six consecutive quarters, underscoring consistent profitability.
Return on Capital Employed (ROCE) for the half-year period stands at a healthy 13.88%, while quarterly Profit After Tax (PAT) reached Rs.67.41 crores, growing 47.6% compared to the previous four-quarter average. Net sales for the quarter were Rs.221.01 crores, marking a 35.6% increase over the prior four-quarter average. These figures highlight the company’s capacity to generate earnings growth despite the subdued share price performance.
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Comparative Market Performance
Over the last year, Deep Industries has underperformed not only the Sensex but also the broader BSE500 index, which has delivered a 7.55% return. The stock’s negative return of 36.64% contrasts sharply with these benchmarks, reflecting sector-specific pressures and valuation adjustments. The Oil sector itself has faced volatility, but Deep Industries’ share price decline has been more pronounced.
Summary of Key Metrics
To summarise, Deep Industries Ltd’s stock currently trades at Rs.367.4, its lowest level in 52 weeks, with a market cap grade of 3 and a Mojo Grade of Sell. The company’s financials show strong profit growth and healthy operating metrics, yet the stock price has not reflected these fundamentals. The valuation premium relative to peers and limited mutual fund participation may be factors influencing the subdued market sentiment.
While the broader market and sector indices show signs of resilience, Deep Industries remains under pressure, trading below all major moving averages and continuing a short-term downward trend. Investors and market participants will be monitoring the stock’s performance closely in the context of these mixed signals.
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