Deepak Builders & Engineers India Hits All-Time Low Amid Prolonged Downtrend

Recent Price Movements and Market Context

On 3 December 2025, Deepak Builders & Engineers India recorded an intraday low of Rs.122.85, which also represents its lowest closing level in the past 52 weeks. The stock has been on a consecutive five-day losing streak, accumulating a total return of -5.72% during this period. Today's session saw the share price retreat by 2.45%, underperforming the broader Sensex index, which declined by 0.34% on the same day. Furthermore, the stock lagged behind its sector peers by 1.12% in daily performance.

Technical indicators reveal that the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests a persistent bearish momentum in the short to long term.

Comparative Performance Over Various Timeframes

Deepak Builders & Engineers India’s performance over multiple time horizons highlights a pattern of underperformance relative to the broader market benchmarks. Over the past week, the stock declined by 6.05%, while the Sensex recorded a fall of 0.88%. The one-month period shows a sharper contrast, with the stock falling 13.22% against a Sensex gain of 1.04%. Over three months, the stock posted a -3.45% return, whereas the Sensex appreciated by 5.32%.

Longer-term figures further underscore the stock’s subdued trajectory. The one-year return stands at -25.15%, compared to a Sensex gain of 4.96%. Year-to-date, the stock has declined by 33.78%, while the Sensex has advanced by 8.59%. Notably, the stock has not generated any returns over the past three, five, and ten years, contrasting sharply with the Sensex’s respective gains of 34.97%, 90.11%, and 227.78% during these periods.

Financial Results and Profitability Trends

The company’s recent quarterly results have reflected a challenging financial environment. Operating profit for the quarter ending September 2025 showed a contraction of 48.83% compared to previous periods. This marks the third consecutive quarter with negative results, indicating a sustained pressure on earnings.

Profit before tax excluding other income for the quarter stood at Rs.5.40 crore, representing a decline of 70.4% relative to the average of the preceding four quarters. Similarly, the profit after tax for the quarter was Rs.4.98 crore, down by 65.4% compared to the same benchmark. The operating profit to interest coverage ratio for the quarter was recorded at 2.27 times, the lowest level observed in recent periods, signalling tighter financial cushioning against interest obligations.

Institutional Investor Activity

Institutional investors have reduced their holdings in Deepak Builders & Engineers India by 1.09% over the previous quarter. Currently, these investors collectively hold 2.78% of the company’s shares. Given their analytical resources and market insight, this reduction in stake may reflect a reassessment of the company’s fundamentals within institutional circles.

Long-Term Growth and Valuation Metrics

Despite recent setbacks, the company has demonstrated a healthy long-term growth rate in operating profit, averaging 51.41% annually. Return on capital employed (ROCE) stands at 14.9%, which is considered an attractive level within the construction sector. The enterprise value to capital employed ratio is 1.3, indicating a valuation that some may interpret as reasonable relative to the company’s capital base.

However, over the past year, while the stock price has declined by 25.15%, profits have also contracted by 6%, reflecting a challenging environment for earnings growth.

Summary of Performance and Market Position

Deepak Builders & Engineers India’s stock has experienced a marked decline, reaching its lowest level ever amid a backdrop of subdued financial results and reduced institutional participation. The stock’s performance has lagged behind key market indices and sector benchmarks across multiple timeframes, from short-term to decade-long horizons.

While the company’s long-term operating profit growth and valuation metrics present some positive aspects, the recent quarterly earnings contraction and persistent downward price momentum highlight the challenges faced by the stock in the current market environment.

Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →