Deepak Builders & Engineers India Ltd Falls to 52-Week Low of Rs.79

Stock Performance and Market Context

The stock’s latest low of Rs.79 represents a sharp contrast to its 52-week high of Rs.185.60, underscoring a steep decline of over 57% from its peak. This downturn has occurred despite the broader market’s mixed performance, with the Sensex opening 142.71 points higher but eventually retreating by 301.94 points to close at 82,116.84, down 0.19%. The Sensex remains within 4.92% of its 52-week high of 86,159.02, indicating relative resilience compared to Deepak Builders’ performance.

Deepak Builders is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. The stock underperformed its sector by 0.75% today, continuing a trend of relative weakness within the construction industry.

Financial Results and Profitability Metrics

The company has reported negative results for four consecutive quarters, contributing to the stock’s subdued performance. The latest six-month profit after tax (PAT) stood at Rs.10.15 crore, reflecting a decline of 67.61% compared to the previous period. Meanwhile, interest expenses have increased by 32.62% to Rs.7.44 crore in the latest quarter, exerting additional pressure on profitability.

Operating profit to interest ratio has dropped to a low of 2.01 times, indicating tighter coverage of interest obligations by operating earnings. This metric highlights the challenges faced in maintaining earnings sufficient to service debt costs.

Long-Term and Short-Term Performance Trends

Over the past year, Deepak Builders has delivered a total return of -46.38%, significantly underperforming the Sensex, which posted a positive return of 10.07% over the same period. The stock has also lagged behind the broader BSE500 index across multiple time frames, including the last three years, one year, and three months, reflecting persistent underperformance relative to market benchmarks.

Despite these challenges, the company has demonstrated healthy long-term growth in operating profit, which has increased at an annualised rate of 51.41%. This growth, however, has not translated into improved bottom-line results in recent quarters.

Valuation and Capital Efficiency

Deepak Builders maintains a return on capital employed (ROCE) of 14.9%, which is considered attractive within the construction sector. The company’s enterprise value to capital employed ratio stands at 0.9, suggesting a valuation that may be appealing relative to its capital base. However, these metrics have not been sufficient to offset the impact of declining profits and rising interest costs on the stock price.

Profitability over the past year has decreased by 6%, further contributing to the stock’s downward trajectory. The company’s promoter group remains the majority shareholder, maintaining control over strategic decisions and corporate governance.

Sector and Market Dynamics

The construction sector continues to face headwinds, with Deepak Builders’ performance reflecting broader industry pressures. The stock’s Mojo Score is 31.0, with a Mojo Grade of Sell, downgraded from Strong Sell on 18 Dec 2025. This grading reflects the company’s current financial and market challenges as assessed by MarketsMOJO’s proprietary evaluation system.

In comparison, the Sensex’s 50-day moving average remains above its 200-day moving average, indicating a generally positive medium-term market trend, which contrasts with Deepak Builders’ sustained weakness.

Summary of Key Metrics

To summarise, Deepak Builders & Engineers India Ltd’s stock has reached a new 52-week low of Rs.79 after a sustained period of decline. The company’s financial results have shown contraction in profits and increased interest expenses, while the stock has underperformed both its sector and the broader market indices. Despite some positive long-term operating profit growth and attractive valuation ratios, the stock’s current momentum remains weak, with all major moving averages trending above the current price.

Market participants will note the company’s downgrade in Mojo Grade to Sell, reflecting the challenges faced in recent quarters. The stock’s seven-day consecutive fall and significant year-on-year negative returns highlight the pressures within the construction sector and the company’s specific financial performance.

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