Deepak Builders & Engineers India Ltd Drops 11.33%: 8 Days of Decline Amid Financial Strain

23 February 2026: Stock Hits New 52-Week and All-Time Low at Rs.84.1

Deepak Builders & Engineers India Ltd’s share price plunged to Rs.84.1, marking its lowest level in a year and an all-time low. This decline followed four consecutive days of losses, with the stock down 6.18% over that period. The day’s fall of 1.67% contrasted with the Sensex’s gain of 0.39%, highlighting the stock’s underperformance. The price drop reflected ongoing financial challenges, including four quarters of negative earnings and a 67.61% contraction in profit after tax (PAT) over the latest six months. Interest expenses rose by 32.62% to Rs.7.44 crore, squeezing profitability further. The stock traded below all major moving averages, signalling sustained bearish momentum.

24 February 2026: Continued Downtrend to Rs.83.3 Amid Market Weakness

The stock extended its decline to Rs.83.3, again hitting fresh 52-week and all-time lows. This day’s 3.12% drop occurred alongside a broader market decline, with the Sensex falling 0.78%. Despite the market weakness, Deepak Builders’ underperformance was notable, trading below all key moving averages and reflecting persistent selling pressure. The company’s financial metrics remained under strain, with operating profit to interest coverage ratio at a low 2.01 times, indicating tighter debt servicing capacity. Long-term operating profit growth remains robust at an annualised 51.41%, but this has yet to translate into improved bottom-line results.

25 February 2026: Stock Falls to Rs.79.14, Extending Six-Day Losing Streak

Deepak Builders & Engineers India Ltd’s share price declined further to Rs.79.14, marking another 52-week low and all-time low. The stock underperformed its sector by 1.09% and closed down 2.07% on the day. This marked the sixth consecutive session of losses, accumulating an 11.58% decline over this period. Intraday volatility was evident, with the stock reaching a high of Rs.83.75 before retreating sharply. The company’s financial results continued to weigh on sentiment, with PAT down 67.61% and rising interest expenses. Despite these pressures, the company’s return on capital employed (ROCE) remains attractive at 14.9%, and the enterprise value to capital employed ratio stands at 0.9, suggesting reasonable valuation metrics amid the downtrend.

26 February 2026: New 52-Week Low of Rs.79 Amid Mixed Market Signals

The stock touched Rs.79, its lowest level in the past year, continuing the downward trajectory. The day’s 1.71% decline contrasted with a mixed Sensex performance, which closed down 0.19%. Deepak Builders remained below all major moving averages, reinforcing the bearish technical outlook. The company’s financial strain persisted, with a low operating profit to interest coverage ratio of 2.01 times and a 6% decline in profits over the past year. The Mojo Score of 31.0 and a ‘Sell’ grade reflect the cautious market sentiment. Despite these challenges, the company’s long-term operating profit growth of 51.41% annually indicates some underlying business strength.

27 February 2026: All-Time Low of Rs.76.31 Reached, Closing at Rs.76.07

Deepak Builders & Engineers India Ltd’s stock plunged to a fresh all-time low of Rs.76.31 intraday, closing at Rs.76.07, down 3.30% on the day. This marked the eighth consecutive day of losses, with a cumulative decline of 15.18% over this stretch. The stock underperformed both the Sensex and its construction sector peers, reflecting ongoing financial and operational challenges. Despite a short-term intraday gain of 2.26%, the downward momentum prevailed. The company’s PAT declined by 67.61% over six months, while interest expenses rose 32.62%, squeezing earnings. The operating profit to interest coverage ratio remains at a low 2.01 times, signalling tight financial conditions. The stock trades below all key moving averages, reinforcing the bearish technical outlook.

Key Takeaways from the Week

Significant Price Decline: The stock fell 11.33% over the week, sharply underperforming the Sensex’s 0.96% decline. Multiple fresh 52-week and all-time lows were recorded, reflecting sustained selling pressure.

Financial Pressures: Four consecutive quarters of negative earnings and a 67.61% drop in PAT over six months highlight ongoing profitability challenges. Rising interest expenses (+32.62%) have further squeezed margins.

Technical Weakness: The stock consistently traded below all major moving averages (5-day to 200-day), signalling persistent bearish momentum and limited short-term support.

Valuation and Growth Metrics: Despite recent setbacks, the company maintains a healthy long-term operating profit growth rate of 51.41% annually and a respectable ROCE of 14.9%. The enterprise value to capital employed ratio of 0.9 suggests reasonable valuation relative to capital base.

Market Sentiment and Ratings: The Mojo Score stands at 31.0 with a ‘Sell’ grade, downgraded from ‘Strong Sell’ in December 2025, reflecting cautious market sentiment amid ongoing challenges.

Conclusion

Deepak Builders & Engineers India Ltd’s stock experienced a notably difficult week, marked by steep declines and fresh lows amid persistent financial and operational headwinds. The company’s deteriorating profitability, rising interest costs, and sustained technical weakness have contributed to its underperformance relative to the Sensex and sector peers. While long-term operating profit growth and capital efficiency metrics offer some positive context, these have not translated into improved market performance. The stock’s current Mojo Grade of ‘Sell’ and ongoing downtrend suggest continued caution among investors as the company navigates a challenging environment.

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