Recent Price Movements and Market Context
The stock price of Deepak Builders & Engineers India recorded a fall of 1.74% on the latest trading day, underperforming the Sensex which declined by 0.19%. Over the past week, the stock has declined by 4.27%, while the Sensex showed a marginal fall of 0.49%. The downward trend has intensified over the last month with the stock registering a 15.87% decline compared to a 0.32% fall in the Sensex.
Looking at a longer horizon, the stock’s performance over three months shows a decline of 29.84%, contrasting with a 1.67% gain in the Sensex. The one-year performance is particularly notable, with Deepak Builders & Engineers India posting a 41.02% fall while the Sensex gained 5.26%. Year to date, the stock has declined by 39.94%, whereas the Sensex has advanced by 8.01%.
In addition, the stock is trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. The stock has also underperformed the BSE500 index over the last three years, with no recorded gains, while the benchmark index has appreciated by 37.60% during the same period.
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Financial Performance and Profitability Trends
The company’s quarterly results reveal a challenging environment. Operating profit has shown a decline of 48.83%, contributing to what has been described as very negative results for the quarter ending September 2025. This marks the third consecutive quarter of negative results for Deepak Builders & Engineers India.
Profit after tax (PAT) for the quarter stood at Rs.4.98 crores, reflecting a fall of 65.4% compared to the average of the previous four quarters. Operating profit to interest coverage ratio is at a low of 2.27 times, indicating tighter margins for servicing debt obligations. Net sales for the quarter were recorded at Rs.45.05 crores, the lowest in recent periods.
Institutional Investor Participation
Institutional investors have reduced their stake by 1.09% over the previous quarter, now collectively holding 2.78% of the company’s shares. This reduction in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
Long-Term Growth and Valuation Metrics
Despite recent setbacks, the company has demonstrated healthy long-term growth in operating profit, with an annual growth rate of 51.41%. Return on capital employed (ROCE) stands at 14.9%, which is considered an attractive valuation metric. The enterprise value to capital employed ratio is 1.2, suggesting a valuation that may be viewed as reasonable relative to the company’s capital base.
However, over the past year, while the stock price has declined by 41.02%, profits have fallen by 6%, indicating a divergence between market valuation and earnings performance.
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Comparative Performance and Market Position
Deepak Builders & Engineers India’s stock has not recorded any gains over the last three, five, and ten years, while the Sensex has appreciated by 37.60%, 79.72%, and 230.73% respectively over the same periods. This long-term underperformance highlights the challenges the company faces in regaining market confidence and delivering shareholder value.
The stock’s consecutive three-day decline has resulted in a cumulative loss of 2.41%, further emphasising the current downward momentum. Additionally, the stock has underperformed its sector by 0.34% on the latest trading day.
Summary of Key Metrics
To summarise, Deepak Builders & Engineers India’s stock price has reached Rs.116.05, an all-time low, with a day change of -1.74%. The company’s quarterly financials show a significant reduction in operating profit and PAT, alongside the lowest net sales in recent quarters. Institutional investor participation has declined, and the stock continues to trade below all major moving averages. While long-term operating profit growth and valuation metrics remain positive, the stock’s performance relative to market indices and sector peers remains subdued.
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