Stock Performance and Market Context
On 25 Feb 2026, Deepak Builders & Engineers India Ltd's share price touched an intraday low of Rs.79.14, representing a 3.17% drop from its previous close. The stock has been on a consistent downward trajectory, declining for six consecutive days and registering an 11.58% loss over this period. Despite an intraday high of Rs.83.75, the stock closed notably lower, underperforming its sector by 1.09% on the day.
The current price is substantially below the stock’s 52-week high of Rs.185.60, reflecting a year-long depreciation of 45.64%. This contrasts sharply with the broader market benchmark, the Sensex, which has delivered a positive return of 10.25% over the same timeframe. The Sensex itself opened higher at 82,530.12 points, gaining 0.37% before settling near 82,243.90 points, just 4.76% shy of its own 52-week high.
Deepak Builders 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. This technical positioning underscores the stock’s current weakness relative to both its historical price levels and broader market trends.
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Financial Performance and Profitability Metrics
The company has reported negative net profits for four consecutive quarters, contributing to the subdued investor sentiment. The latest six-month profit after tax (PAT) stands at Rs.10.15 crores, reflecting a decline of 67.61% compared to the previous period. Concurrently, interest expenses have increased by 32.62% to Rs.7.44 crores, exerting additional pressure on the company’s earnings.
Operating profit to interest ratio has contracted to a low of 2.01 times, indicating tighter coverage of interest obligations by operating earnings. This metric is critical in assessing the company’s ability to service debt from its core operations and suggests a more constrained financial position.
Over the past year, profits have decreased by 6%, further highlighting the challenges faced in maintaining earnings growth. Despite this, the company has demonstrated a healthy long-term growth rate in operating profit, expanding at an annualised rate of 51.41%. This suggests that while recent quarters have been difficult, the underlying business has shown capacity for expansion over a longer horizon.
Valuation and Capital Efficiency
Deepak Builders & Engineers India Ltd maintains 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 0.9, indicating a valuation that may be viewed as reasonable relative to the capital base.
However, the stock’s Mojo Score remains low at 31.0, with a Mojo Grade of Sell as of 18 Dec 2025, downgraded from a previous Strong Sell rating. The market capitalisation grade is rated 4, reflecting the company’s micro-cap status and associated liquidity considerations.
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Shareholding and Market Position
The majority shareholding remains with the company’s promoters, maintaining control over strategic decisions. Despite the recent price weakness, the company continues to operate within the construction sector, which has experienced mixed performance amid broader economic fluctuations.
In comparison to the BSE500 index, Deepak Builders has underperformed over the last three years, one year, and three months, indicating persistent challenges in delivering shareholder returns relative to a broad market benchmark.
Summary of Key Price and Performance Indicators
To summarise, the stock’s 52-week low of Rs.79.14 represents a significant technical milestone, reflecting sustained selling pressure. The six-day consecutive decline and underperformance relative to sector and market indices underscore the current cautious sentiment surrounding the stock. While the company’s long-term operating profit growth and valuation metrics offer some positive context, recent quarterly results and profitability trends have weighed on the share price.
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