Key Events This Week
2 Feb: Stock hits 52-week and all-time low amid earnings pressure
3 Feb: Sharp rebound with 4.95% gain as market rallies
4 Feb: Continued gains of 4.47% on improving sentiment
5 Feb: Profit-taking leads to 3.38% decline
6 Feb: Week closes at Rs.91.00, down slightly by 0.60% on the day
2 February: Stock Hits 52-Week and All-Time Low Amid Earnings Pressure
Deepak Builders & Engineers India Ltd’s shares plunged to a new 52-week low of Rs.84.67 intraday on 2 February 2026, closing at Rs.86.42, down 1.85% on the day. This marked a continuation of a prolonged downtrend driven by deteriorating earnings and subdued sector sentiment. The stock underperformed the Sensex, which declined 1.03% to 35,814.09.
The company’s recent quarterly results revealed a 48.83% drop in operating profit and a 65.4% fall in profit after tax, reflecting significant financial strain. The stock traded below all key moving averages, signalling persistent bearish momentum. MarketsMOJO downgraded the stock to a Strong Sell with a Mojo Score of 29.0, reflecting the challenging outlook.
3 February: Sharp Rebound as Market Rally Lifts Stock by 4.95%
Following the steep decline, Deepak Builders & Engineers India Ltd rebounded strongly on 3 February, gaining 4.95% to close at Rs.90.70. This recovery outpaced the Sensex’s 2.63% gain, which closed at 36,755.96. The bounce was supported by broader market optimism and a partial retracement of the prior day’s losses.
Trading volumes remained steady at 2,930 shares, indicating cautious investor interest. Despite the rebound, the stock remained below key moving averages, and the underlying financial challenges persisted.
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4 February: Continued Gains Amid Improving Sentiment
The positive momentum extended into 4 February, with the stock rising 4.47% to Rs.94.75, its highest close of the week. This gain outperformed the Sensex’s modest 0.37% increase to 36,890.21. Volume increased to 3,977 shares, suggesting growing investor engagement.
Despite the short-term rally, the stock’s fundamentals remained under pressure, with recent earnings declines and a Strong Sell rating from MarketsMOJO. The stock’s valuation metrics, including a ROCE of 14.9% and an enterprise value to capital employed ratio of 1, indicate some underlying capital efficiency, but these have yet to translate into sustained price strength.
5 February: Profit-Taking Triggers 3.38% Decline
Profit-taking emerged on 5 February, with the stock retreating 3.38% to Rs.91.55 on lower volume of 1,305 shares. The Sensex also declined 0.53% to 36,695.11, reflecting a broader market pullback. The stock’s retreat followed two days of strong gains, suggesting short-term traders locking in profits amid ongoing uncertainty.
6 February: Week Closes Slightly Lower Amid Mixed Market Signals
On the final trading day of the week, Deepak Builders & Engineers India Ltd edged down 0.60% to close at Rs.91.00 on very thin volume of 271 shares. The Sensex inched up 0.10% to 36,730.20. The modest decline capped a week of volatility, with the stock ending 3.35% higher from the previous Friday’s close of Rs.88.05.
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Daily Price Comparison: Deepak Builders & Engineers India Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.86.42 | -1.85% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.90.70 | +4.95% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.94.75 | +4.47% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.91.55 | -3.38% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.91.00 | -0.60% | 36,730.20 | +0.10% |
Key Takeaways
Deepak Builders & Engineers India Ltd’s stock demonstrated resilience this week, recovering 3.35% from a low base despite ongoing financial headwinds. The initial sharp decline to a 52-week and all-time low on 2 February reflected persistent earnings pressure, with operating profit and PAT falling significantly in recent quarters.
The subsequent rebound on 3 and 4 February was driven by broader market strength and short-term technical buying, allowing the stock to outperform the Sensex by over 1.8 percentage points for the week. However, the rally was tempered by profit-taking and thin volumes towards the week’s close, underscoring lingering uncertainty.
Valuation metrics such as a 14.9% ROCE and an enterprise value to capital employed ratio of 1 suggest some capital efficiency, but these have not yet translated into sustained price momentum. The Strong Sell rating and low Mojo Score reflect the challenges ahead, including subdued sales and profitability trends.
Investors should note the stock’s continued trading below all major moving averages and its underperformance relative to sector peers over longer timeframes. The promoter majority shareholding may influence strategic decisions amid this difficult environment.
Conclusion
In summary, Deepak Builders & Engineers India Ltd’s week was characterised by a volatile price journey from historic lows to a partial recovery. While the stock outperformed the Sensex’s modest gains, the underlying financial and technical indicators remain weak. The company’s recent earnings contraction and bearish technical positioning suggest caution, despite some signs of capital efficiency. The coming weeks will be critical to observe whether the stock can sustain its recovery or if the downtrend will resume.
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