Stock Performance and Market Context
The stock’s intraday low of Rs.84.67 represents a substantial fall from its 52-week high of Rs.185.60, reflecting a near 54.4% decline over the past year. This downturn contrasts with the Sensex’s modest gain of 3.89% during the same period, underscoring the stock’s underperformance relative to the broader market. On the day of the new low, Deepak Builders underperformed its sector by 2.56%, closing with a day change of -4.99%.
Market conditions have been challenging, with the Sensex opening 167.26 points lower and trading at 80,482.73, down 0.3%. Notably, other indices such as the S&P BSE FMCG and NIFTY FMCG also hit 52-week lows on the same day, indicating a broader market sentiment of caution.
Technical indicators show Deepak Builders trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward momentum. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, suggesting mixed signals for the broader market.
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Financial Performance and Profitability Trends
Deepak Builders & Engineers India Ltd has reported a series of negative quarterly results, with the latest figures revealing a sharp decline in key financial metrics. Net sales for the quarter stood at Rs.45.05 crores, down 69.1% compared to the previous four-quarter average. Profit after tax (PAT) also contracted significantly, falling 65.4% to Rs.4.98 crores over the same period.
The operating profit has decreased by 48.83%, contributing to the company’s very negative quarterly results declared in September 2025. The operating profit to interest coverage ratio has dropped to a low of 2.27 times, indicating tighter margins for servicing debt obligations.
Over the past year, the company’s profits have declined by 6%, while the stock price has fallen by over 50%, reflecting the market’s reaction to the deteriorating earnings profile. The company’s long-term growth rate in operating profit remains healthy at an annualised 51.41%, but recent quarterly results have not mirrored this trend.
Long-Term and Relative Performance
Deepak Builders has underperformed not only in the past year but also over longer time horizons. The stock has generated a negative return of 50.56% in the last 12 months and has lagged the BSE500 index over the last three years, one year, and three months. This sustained underperformance highlights challenges in maintaining investor confidence and market valuation.
Despite these setbacks, the company maintains a return on capital employed (ROCE) of 14.9%, which is considered attractive within the construction sector. Its enterprise value to capital employed ratio stands at 1, suggesting a valuation that some may view as reasonable given the current financial backdrop.
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Shareholding and Market Grade
The majority shareholding in Deepak Builders & Engineers India Ltd remains with the promoters, indicating concentrated ownership. The company’s Mojo Score currently stands at 29.0, with a Mojo Grade of Strong Sell as of 18 Dec 2025, an upgrade from the previous Sell rating. The market capitalisation grade is 4, reflecting its micro-cap status within the construction sector.
These ratings are reflective of the company’s recent financial performance and stock price trends, signalling caution in the current market environment.
Summary of Key Metrics
To summarise, Deepak Builders & Engineers India Ltd’s stock has reached a new 52-week low of Rs.84.67, down nearly 50% over the past year. The company has experienced significant declines in net sales and profitability, with three consecutive quarters of negative results. While some long-term growth indicators remain positive, recent financial data and market performance have weighed heavily on the stock’s valuation.
Trading below all major moving averages and underperforming both its sector and the broader market, the stock’s current position reflects a challenging period for the company within the construction industry.
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