Deepak Builders & Engineers India Ltd Falls to 52-Week Low of Rs.91.05

Stock Price Movement and Market Context

On 27 Jan 2026, Deepak Builders & Engineers India Ltd’s share price reached an intraday low of Rs.91.05, representing a fall of 2.78% on the day. This new low also stands as the company’s all-time lowest price. The stock has declined for two consecutive sessions, cumulatively losing 2.59% over this period. It underperformed the construction sector by 1.28% today, while the broader Sensex index recovered from an initial negative opening to close marginally higher by 0.08% at 81,603.32 points.

The stock 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. In contrast, the Sensex, although trading below its 50-day moving average, maintains a positive trend with its 50-day average above the 200-day average, supported by gains in mega-cap stocks.

Financial Performance and Profitability Concerns

Deepak Builders & Engineers India Ltd’s financial results have been under pressure, contributing to the stock’s weak performance. The company reported a sharp decline in operating profit by 48.83% in the quarter ending September 2025, which was characterised as very negative. This marks the third consecutive quarter of negative results, with net sales for the quarter at Rs.45.05 crores, down 69.1% compared to the previous four-quarter average.

Profit after tax (PAT) also contracted significantly, falling 65.4% to Rs.4.98 crores versus the prior four-quarter average. The operating profit to interest coverage ratio dropped to a low of 2.27 times, indicating tighter margins and increased financial strain. These metrics have contributed to the company’s downgrade to a Strong Sell rating, with a Mojo Score of 29.0 as of 18 Dec 2025, reflecting deteriorated fundamentals.

Long-Term and Relative Performance

Over the past year, Deepak Builders & Engineers India Ltd has delivered a negative return of 44.04%, significantly underperforming the Sensex, which gained 8.31% over the same period. The stock’s 52-week high was Rs.185.60, highlighting the extent of the decline. Additionally, the company has underperformed the BSE500 index across one-year, three-year, and three-month timeframes, indicating persistent challenges in maintaining competitive growth.

Despite recent setbacks, the company has demonstrated healthy long-term growth in operating profit, with an annualised increase of 51.41%. Its 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. These factors suggest underlying operational strengths amid current difficulties.

Shareholding and Market Capitalisation

The majority shareholding remains with the promoters, providing a stable ownership structure. However, the company’s market capitalisation grade is rated at 4, reflecting its mid-tier market cap status. The downgrade from a Sell to a Strong Sell rating on 18 Dec 2025 underscores the market’s cautious stance on the stock’s near-term prospects.

Sector and Market Environment

The construction sector, in which Deepak Builders & Engineers India Ltd operates, has seen mixed performance with indices such as NIFTY MEDIA and NIFTY REALTY also hitting 52-week lows on the same day. This reflects broader sectoral pressures that may be influencing the stock’s trajectory. While the Sensex has shown resilience, led by mega-cap stocks, smaller and mid-cap construction firms continue to face headwinds.

Deepak Builders’ underperformance relative to its sector and the broader market highlights the challenges it faces in regaining investor confidence and market share. The stock’s current trading below all major moving averages further emphasises the prevailing downward momentum.

Summary of Key Metrics

To summarise, Deepak Builders & Engineers India Ltd’s stock has declined to Rs.91.05, its lowest level in 52 weeks and all-time low. The company’s financial results have shown significant contraction in sales and profits, with operating profit falling by nearly half in the latest quarter. The stock’s downgrade to a Strong Sell rating and a Mojo Score of 29.0 reflect these deteriorating fundamentals. Despite some positive long-term growth indicators and attractive valuation metrics, the stock continues to face challenges in both the short and medium term.

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