Deepak Builders & Engineers India Ltd Falls to 52-Week Low of Rs.78.23

Stock Price Movement and Market Context

On 27 Feb 2026, Deepak Builders & Engineers India Ltd's share price touched Rs.78.23, its lowest level in the past 52 weeks and also an all-time low. This marks a steep fall from its 52-week high of Rs.185.60, representing a decline of approximately 57.8% over the period. Despite this, the stock outperformed its sector by 1.5% on the day, showing a modest gain after seven consecutive days of decline.

The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend. This contrasts with the broader market, where the Sensex opened flat but later declined by 458.19 points (-0.59%) to 81,762.29. The Sensex itself is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, suggesting some underlying market resilience.

Financial Performance and Profitability Concerns

Deepak Builders & Engineers India Ltd has reported negative results for four consecutive quarters, reflecting ongoing pressures on profitability. The latest six-month period saw a profit after tax (PAT) of Rs.10.15 crore, which represents a contraction of 67.61% compared to the previous corresponding period. This sharp decline in net earnings has weighed heavily on investor sentiment and contributed to the stock's downward trajectory.

Interest expenses have increased by 32.62% in the latest quarter, reaching Rs.7.44 crore. This rise in financial costs has further compressed margins, with the operating profit to interest ratio falling to a low of 2.01 times. Such a ratio indicates limited coverage of interest expenses by operating profits, raising concerns about financial flexibility.

Long-Term Trends and Valuation Metrics

Over the past year, Deepak Builders & Engineers India Ltd has delivered a total return of -45.85%, significantly underperforming the Sensex, which gained 9.58% over the same period. The stock has also lagged behind the broader BSE500 index in the last three years, one year, and three months, highlighting persistent challenges in generating shareholder value.

Despite recent setbacks, the company has demonstrated healthy long-term growth in operating profit, which has increased at an annualised rate of 51.41%. This suggests that the underlying business has maintained some momentum in core earnings before interest and tax.

Return on capital employed (ROCE) stands at a respectable 14.9%, reflecting efficient use of capital relative to earnings. Additionally, the enterprise value to capital employed ratio is 0.9, indicating a valuation that may be considered attractive relative to the company's capital base.

Shareholding and Market Sentiment

The majority shareholding remains with the promoters, who continue to hold a controlling stake in the company. This concentrated ownership structure may influence strategic decisions and capital allocation going forward.

Market sentiment towards the stock is reflected in its Mojo Score of 31.0 and a Mojo Grade of Sell, which was downgraded from Strong Sell on 18 Dec 2025. The Market Cap Grade is 4, indicating a mid-tier market capitalisation relative to peers in the construction sector.

Summary of Key Financial Indicators

Recent quarterly results have shown a decline in profitability, with PAT shrinking by 67.61% and interest costs rising by 32.62%. The operating profit to interest coverage ratio at 2.01 times is the lowest recorded, signalling tighter financial conditions. Over the last year, profits have decreased by 6%, compounding the pressure on the stock price.

Nevertheless, the company’s operating profit growth rate of 51.41% annually and ROCE of 14.9% provide some indication of underlying business strength. The valuation metrics, including an enterprise value to capital employed ratio below 1, suggest that the stock is priced at a level reflecting current challenges.

In the context of the broader market, Deepak Builders & Engineers India Ltd’s performance has been notably weaker than the Sensex and its sector peers, with a 52-week low price of Rs.78.23 underscoring the stock’s recent difficulties.

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