Stock Price Movement and Market Context
On the day the stock hit this low, it also recorded an intraday high of Rs.97.45, representing a 3.67% gain from the low point, and outperformed its sector by 0.81%. Despite this slight rebound, the share price remains substantially below its 52-week high of Rs.185.60, reflecting a steep decline of approximately 50%. The stock has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent downward trend.
The broader market environment has been mixed. The Sensex opened higher at 82,459.66, gaining 550.03 points (0.67%) but was trading slightly lower at 82,059.27 (down 0.18%) during the session. Notably, the Sensex has experienced a three-week consecutive fall, losing 4.32% over this period. Mid-cap stocks, however, have shown relative strength, with the BSE Mid Cap index gaining 0.81% on the day.
Financial Performance and Recent Results
Deepak Builders & Engineers India Ltd’s recent financial disclosures have highlighted several areas of concern. The company reported a sharp decline in operating profit by 48.83% in the quarter ending September 2025, contributing to a "Very Negative" rating for that period. This marks the third consecutive quarter of negative results, underscoring ongoing difficulties in maintaining profitability.
Quarterly net sales stood at Rs.45.05 crores, down 69.1% compared to the previous four-quarter average. Similarly, profit after tax (PAT) fell by 65.4% to Rs.4.98 crores over the same comparative period. The operating profit to interest coverage ratio also declined to a low of 2.27 times, signalling tighter financial cushioning against interest obligations.
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Long-Term and Relative Performance
Over the past year, Deepak Builders & Engineers India Ltd has delivered a total return of -42.80%, significantly underperforming the Sensex, which posted a positive return of 7.41% during the same period. The stock has also lagged behind the BSE500 index over the last three years, one year, and three months, indicating sustained underperformance relative to broader market benchmarks.
Despite recent setbacks, the company has demonstrated healthy long-term growth in operating profit, with an annualised growth rate of 51.41%. Return on capital employed (ROCE) stands at a respectable 14.9%, and the enterprise value to capital employed ratio is at 1, suggesting an attractive valuation metric from a capital efficiency perspective.
Shareholding and Market Sentiment
The majority shareholding remains with the promoters, maintaining a stable ownership structure. The company’s Mojo Score currently stands at 29.0, with a Mojo Grade of Strong Sell as of 18 Dec 2025, downgraded from Sell. The market capitalisation grade is rated 4, reflecting the company’s micro-cap status within the construction sector.
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Summary of Key Metrics
To summarise, Deepak Builders & Engineers India Ltd’s stock has reached a critical low point at Rs.93, reflecting a combination of subdued sales, declining profits, and a challenging market environment. The company’s financial ratios and recent quarterly results highlight pressures on earnings and cash flow, while its valuation metrics and long-term profit growth provide some context to its current standing.
Market conditions remain volatile, with the Sensex experiencing a recent downtrend and mid-cap stocks showing mixed performance. Deepak Builders’ share price movement below all major moving averages signals continued caution among market participants.
Conclusion
The stock’s fall to a 52-week low underscores the difficulties faced by Deepak Builders & Engineers India Ltd in recent quarters. While the company maintains certain strengths in valuation and long-term profit growth, the near-term financial results and market performance have weighed heavily on its share price. The current trading levels reflect these challenges within the broader construction sector and the company’s specific financial trajectory.
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