Deepak Builders & Engineers India Ltd Falls 5.98%: Key Factors Behind the Steep Decline

Jan 31 2026 09:01 AM IST
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Deepak Builders & Engineers India Ltd experienced a challenging week ending 30 January 2026, with its stock price declining 5.98% from Rs.93.65 to Rs.88.05, significantly underperforming the Sensex which gained 1.62% over the same period. The stock hit fresh 52-week and all-time lows amid deteriorating financial results and sustained bearish momentum, reflecting ongoing pressures within the company and its sector.

Key Events This Week

27 Jan: Stock hits 52-week and all-time low of Rs.91.05/Rs.91.60

28 Jan: Partial recovery to Rs.92.75 (+1.98%) amid broader market gains

29 Jan: Decline resumes, closing at Rs.91.40 (-1.46%)

30 Jan: New 52-week and all-time low of Rs.89.85, closing at Rs.88.05 (-3.67%)

Week Open
Rs.93.65
Week Close
Rs.88.05
-5.98%
Week High
Rs.92.75
Sensex Change
+1.62%

27 January 2026: Stock Hits 52-Week and All-Time Low Amid Financial Strain

On 27 January, Deepak Builders & Engineers India Ltd’s stock price plunged to a fresh 52-week low of Rs.91.05 and an all-time low of Rs.91.60 during intraday trading, closing at Rs.90.95, down 2.88% for the day. This decline came despite the Sensex rallying 0.50% to close at 35,786.84, highlighting the stock’s relative weakness. The drop extended a two-day losing streak, with the stock down 2.59% cumulatively over this period.

The stock’s fall was driven by ongoing financial pressures, including a 69.1% decline in quarterly net sales to Rs.45.05 crore and a 65.4% drop in profit after tax to Rs.4.98 crore. Operating profit also fell sharply by 48.83%, marking the third consecutive quarter of negative results. The operating profit to interest coverage ratio deteriorated to 2.27 times, signalling tighter margins and increased financial strain.

Technically, the stock traded below all key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), reinforcing the bearish momentum. The company’s Mojo Score remained at 29.0 with a Strong Sell rating, reflecting deteriorating fundamentals and market sentiment.

28 January 2026: Brief Rebound Amid Broader Market Strength

On 28 January, the stock partially recovered, closing at Rs.92.75, up 1.98% on the day. This gain coincided with a strong Sensex rally of 1.12% to 36,188.16, driven by broader market optimism. However, the recovery was modest and did not reverse the overall negative trend for the week. Trading volume increased to 6,809 shares, indicating some renewed interest, but the stock remained below key moving averages.

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29 January 2026: Renewed Selling Pressure Returns

The stock resumed its decline on 29 January, closing at Rs.91.40, down 1.46%. This came despite the Sensex advancing 0.22% to 36,266.59, underscoring the stock’s continued underperformance relative to the broader market. Volume dropped to 1,923 shares, reflecting subdued trading activity. The stock remained below all major moving averages, signalling persistent bearish sentiment.

30 January 2026: New 52-Week and All-Time Low Marks Week’s End

On the final trading day of the week, Deepak Builders & Engineers India Ltd’s stock fell further to a new 52-week and all-time low of Rs.89.85, closing at Rs.88.05, down 3.67% for the day. This decline extended the two-day losing streak to a cumulative 2.16%. The Sensex, in contrast, declined marginally by 0.22% to 36,185.03, highlighting the stock’s relative weakness.

The stock’s 52-week high of Rs.185.60 stands in stark contrast to the current price, reflecting a decline of over 51.6% in the past year. Despite the company’s attractive return on capital employed (ROCE) of 14.9% and healthy long-term operating profit growth of 51.41% annually, recent quarters have been marked by significant declines in sales and profitability, weighing heavily on investor sentiment.

Financial metrics remain subdued, with quarterly net sales down 69.1% and profit after tax down 65.4%. The operating profit to interest coverage ratio remains low at 2.27 times, indicating ongoing financial strain. The Mojo Score of 29.0 and Strong Sell rating reflect the comprehensive challenges facing the company.

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Date Stock Price Day Change Sensex Day Change
2026-01-27 Rs.90.95 -2.88% 35,786.84 +0.50%
2026-01-28 Rs.92.75 +1.98% 36,188.16 +1.12%
2026-01-29 Rs.91.40 -1.46% 36,266.59 +0.22%
2026-01-30 Rs.88.05 -3.67% 36,185.03 -0.22%

Key Takeaways

Deepak Builders & Engineers India Ltd’s stock performance this week was marked by a clear downtrend, with the share price falling 5.98% despite a 1.62% gain in the Sensex. The stock’s decline to fresh 52-week and all-time lows highlights persistent financial and operational challenges.

Quarterly financial results reveal significant deterioration, with net sales down 69.1% and profit after tax down 65.4%, contributing to three consecutive quarters of negative earnings. The operating profit to interest coverage ratio of 2.27 times signals tighter margins and increased financial risk.

Technically, the stock remains below all key moving averages, underscoring sustained bearish momentum and lack of near-term support. The Mojo Score of 29.0 and Strong Sell rating reflect the market’s cautious stance.

Despite these challenges, the company’s long-term operating profit growth of 51.41% annually and ROCE of 14.9% indicate underlying capital efficiency and growth potential, though these positives have yet to translate into improved recent performance or stock price recovery.

Conclusion

The week ending 30 January 2026 was a difficult period for Deepak Builders & Engineers India Ltd, with the stock price declining sharply and hitting new lows amid weak financial results and negative market sentiment. While the broader market advanced, the stock’s underperformance highlights company-specific issues that continue to weigh on investor confidence.

Long-term growth metrics offer some optimism, but the immediate outlook remains challenging given the sustained declines in sales, profitability, and share price. The Strong Sell rating from MarketsMOJO encapsulates the cautious market view, signalling that the stock faces significant headwinds in the near term.

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