Stock Performance and Market Context
On 20 Jan 2026, Deepak Builders & Engineers India Ltd recorded an intraday low of Rs.97.1, which also represents its all-time low. This price point is a stark contrast to its 52-week high of Rs.185.6, indicating a substantial depreciation of 47.7% over the past year. The stock has underperformed the broader market, delivering a negative return of -43.69% over the last 12 months, while the Sensex gained 7.55% during the same period.
The stock has declined for three consecutive trading sessions, losing -7.14% in that span. On the day of the new low, it fell by -4.18%, underperforming the Construction - Real Estate sector, which itself declined by -2.4%. Deepak Builders is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish sentiment.
The broader market context also reflects some pressure, with the Sensex closing down by -0.41% at 82,906.50 points, after a flat opening. The index is currently 3.92% below its 52-week high of 86,159.02 and has experienced a three-week consecutive decline, losing -3.33% in that period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed technical signals.
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Financial Performance and Ratings
Deepak Builders & Engineers India Ltd’s financial results have shown a marked deterioration over recent quarters. The company reported a sharp fall in operating profit by -48.83% in the quarter ending September 2025, contributing to a series of negative quarterly results spanning three consecutive periods. Net sales for the quarter stood at Rs.45.05 crores, down -69.1% compared to the average of the previous four quarters. Profit after tax (PAT) also declined significantly by -65.4% to Rs.4.98 crores in the same period.
The operating profit to interest coverage ratio has dropped to a low of 2.27 times, indicating tighter financial flexibility. These results have led to a downgrade in the company’s Mojo Grade from Sell to Strong Sell as of 18 Dec 2025, with a current Mojo Score of 29.0. The market capitalisation grade remains low at 4, reflecting the company’s diminished market standing.
Long-Term Trends and Valuation Metrics
Despite recent setbacks, Deepak Builders has demonstrated healthy long-term growth in operating profit, with an annualised growth rate of 51.41%. The company’s return on capital employed (ROCE) stands at a respectable 14.9%, and it maintains an attractive valuation with an enterprise value to capital employed ratio of 1.1. However, profit levels have declined by -6% over the past year, underscoring the challenges faced in translating growth into consistent earnings.
Shareholding remains concentrated with promoters holding the majority stake, which may influence strategic decisions and capital allocation going forward.
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Sector and Comparative Performance
The Construction sector, particularly the real estate segment, has experienced a downturn, with the sector index falling by -2.4% on the day Deepak Builders hit its 52-week low. The company’s underperformance relative to its sector peers is notable, as it has lagged behind the BSE500 index over the last three years, one year, and three months. This sustained underperformance highlights the stock’s challenges in regaining investor confidence and market momentum.
Trading below all major moving averages further emphasises the prevailing bearish trend. The stock’s current price level at Rs.97.1 is significantly below its 200-day moving average, a key technical indicator often used to assess long-term trends.
Summary of Key Metrics
To summarise, Deepak Builders & Engineers India Ltd’s stock has reached a new low of Rs.97.1, reflecting a year-long decline of -43.69%. The company’s financial results have been under pressure, with operating profit and net sales falling sharply in recent quarters. The downgrade to a Strong Sell rating and a Mojo Score of 29.0 underline the cautious stance adopted by rating agencies. While the company shows promising long-term operating profit growth and attractive valuation ratios, near-term financial performance and market sentiment remain subdued.
The broader market environment, with the Sensex also experiencing a modest decline, adds to the cautious backdrop against which Deepak Builders’ stock is trading. Investors and market participants will continue to monitor the company’s financial disclosures and sector developments closely as the stock navigates this challenging phase.
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