Stock Price Movement and Market Context
On 23 Jan 2026, Deepak Builders & Engineers India Ltd's stock touched an intraday low of Rs.91.75, representing a fall of 2.91% for the day and a 1.59% decline compared to the previous close. This new low also stands as the company’s all-time lowest price, underscoring the downward pressure on the stock over the past year. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained bearish momentum.
The broader construction sector, particularly the real estate segment, has also experienced weakness, with the NIFTY Realty index hitting a 52-week low on the same day and the sector declining by 2.89%. The Sensex opened flat but later fell by 677.87 points, or 0.79%, closing at 81,658.07. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, suggesting mixed signals for the broader market.
Financial Performance and Profitability Concerns
Deepak Builders & Engineers India Ltd’s recent financial results have contributed to the stock’s decline. The company reported a sharp fall 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, reflecting ongoing pressures on the company’s earnings.
Net sales for the quarter stood at Rs.45.05 crores, down 69.1% compared to the average of the previous four quarters. Profit after tax (PAT) also declined significantly by 65.4% to Rs.4.98 crores over the same period. The operating profit to interest coverage ratio has dropped to a low of 2.27 times, signalling tighter financial flexibility and increased strain on the company’s ability to service debt.
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Long-Term Performance and Valuation Metrics
Over the past year, Deepak Builders & Engineers India Ltd has delivered a total return of -47.97%, significantly underperforming the Sensex, which gained 6.71% over the same period. The stock has also lagged behind the BSE500 index in the last three years, one year, and three months, indicating persistent underperformance relative to broader market benchmarks.
Despite recent setbacks, the company has demonstrated healthy long-term growth in operating profit, with an annual growth rate of 51.41%. Its return on capital employed (ROCE) stands at 14.9%, which is considered attractive. Additionally, the enterprise value to capital employed ratio is at 1, suggesting a valuation that may be reasonable relative to the company’s capital base.
Shareholding and Market Sentiment
The majority shareholding remains with the promoters, indicating a stable ownership structure. However, the company’s Mojo Score has deteriorated to 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 relatively modest size within the construction sector.
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Sector and Index Comparisons
The construction sector, particularly real estate, has faced headwinds, with the NIFTY Realty index also hitting a 52-week low on the same day as Deepak Builders’ stock decline. The sector’s fall of 2.89% aligns closely with the stock’s intraday drop, suggesting sector-wide pressures rather than isolated company-specific issues.
Sensex’s decline of 0.79% on the day further reflects a cautious market mood, although the index’s technical positioning remains mixed with the 50-day moving average above the 200-day moving average, indicating some underlying resilience in the broader market.
Summary of Key Financial Indicators
Recent quarterly results highlight significant declines in key metrics:
- Operating profit down by 48.83%
- Net sales down 69.1% to Rs.45.05 crores
- Profit after tax down 65.4% to Rs.4.98 crores
- Operating profit to interest coverage ratio at 2.27 times
These figures underscore the challenges faced by the company in maintaining profitability and sales momentum in the near term.
Historical Price Range
The stock’s 52-week high was Rs.185.60, reached within the last year, indicating a steep decline of over 50% from that peak to the current 52-week low of Rs.91.75. This wide price range reflects significant volatility and changing market perceptions over the period.
Conclusion
Deepak Builders & Engineers India Ltd’s fall to a new 52-week low of Rs.91.75 highlights the ongoing pressures on the company’s financial performance and market valuation. The combination of declining sales, reduced profitability, and sector-wide weakness has contributed to the stock’s underperformance relative to broader indices and peers. While the company maintains some attractive long-term growth metrics and valuation ratios, recent quarterly results and market trends have weighed heavily on investor sentiment and share price levels.
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