Stock Price Movement and Market Context
The stock of Deepak Builders & Engineers India Ltd fell to Rs.115 today, establishing both a new 52-week and all-time low. This decline comes after two consecutive days of losses, during which the stock has dropped by 2.85%. The day’s performance was in line with the broader construction sector, which has seen mixed activity. Notably, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the Sensex opened slightly lower at 84,600.99, down 94.55 points or 0.11%, but has since stabilised to trade near 84,696.30. The benchmark index remains 1.73% shy of its 52-week high of 86,159.02. Mid-cap stocks have shown marginal gains, with the BSE Mid Cap index rising by 0.02%, indicating selective strength in the market that has not extended to Deepak Builders.
Financial Performance and Recent Results
Deepak Builders & Engineers India Ltd’s recent quarterly results have been notably subdued. The company reported a sharp fall in operating profit by 48.83% in the September quarter, contributing to a series of three consecutive quarters with negative results. Net sales for the quarter stood at Rs.45.05 crore, 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 crore over the same period.
Additionally, the operating profit to interest coverage ratio has dropped to a low of 2.27 times, indicating tighter margins and increased pressure on earnings before interest and taxes. These financial metrics have weighed heavily on investor sentiment and contributed to the stock’s recent decline.
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Institutional Investor Activity
Institutional participation in Deepak Builders has declined, with a reduction of 1.09% in their stake over the previous quarter. Currently, institutional investors hold a modest 2.78% of the company’s shares. This decrease is notable given that institutional investors typically possess greater analytical resources and tend to adjust holdings based on fundamental assessments.
Long-Term and Relative Performance
Over the past year, Deepak Builders & Engineers India Ltd has delivered a negative return of 39.59%, significantly underperforming the Sensex, which has gained 8.25% during the same period. The stock has also lagged behind the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in maintaining competitive performance within the broader market.
Despite the recent downturn, the company has demonstrated healthy long-term growth in operating profit, with an annual growth rate of 51.41%. This contrasts with the short-term declines and suggests underlying business expansion over a longer horizon.
Valuation and Financial Ratios
Deepak Builders currently holds a return on capital employed (ROCE) of 14.9%, which is considered attractive within the construction sector. The enterprise value to capital employed ratio stands at a low 1.2, indicating a valuation that may be appealing relative to the company’s capital base. However, the stock’s price performance has not reflected these valuation metrics, as profits have decreased by 6% over the past year alongside the 39.59% decline in share price.
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Mojo Score and Market Sentiment
The company’s Mojo Score currently stands at 29.0, accompanied by a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 18 Dec 2025. This grading reflects the deteriorated financial performance and market position. The market capitalisation grade is rated 4, indicating a relatively modest market cap within its sector.
On the day of the new low, the stock recorded a day change of -0.60%, consistent with the broader sector’s movement. The 52-week high for the stock was Rs.202.95, highlighting the extent of the decline from its peak over the past year.
Summary of Key Financial Metrics
Recent quarterly figures underline the challenges faced by Deepak Builders & Engineers India Ltd:
- Operating profit fell by 48.83% in the September quarter.
- Net sales dropped 69.1% to Rs.45.05 crore compared to the previous four-quarter average.
- Profit after tax declined by 65.4% to Rs.4.98 crore.
- Operating profit to interest coverage ratio at a low 2.27 times.
These figures have contributed to the stock’s recent decline and the establishment of the new 52-week low.
Market and Sector Comparison
While the Sensex and mid-cap indices have shown resilience and modest gains, Deepak Builders has not mirrored this trend. The stock’s underperformance relative to the broader market and its sector peers is evident in both price action and fundamental metrics. This divergence underscores the specific pressures affecting the company within the construction industry.
Conclusion
Deepak Builders & Engineers India Ltd’s fall to Rs.115 marks a significant milestone in its recent market journey, reflecting a combination of subdued financial results, reduced institutional interest, and relative underperformance against market benchmarks. The stock’s valuation metrics and long-term operating profit growth present a complex picture amid ongoing near-term challenges. The current Mojo Grade of Strong Sell encapsulates the prevailing market sentiment and financial realities as of late December 2025.
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