Deepak Builders & Engineers India Ltd Hits All-Time Low Amid Continued Downtrend

Stock Performance and Market Context

On 7 Jan 2026, Deepak Builders & Engineers India Ltd closed just 0.52% above its 52-week low of ₹115, marking a fresh nadir in its trading history. The stock underperformed the construction sector by 0.46% on the day, registering a decline of 2.45%, compared with the Sensex’s modest fall of 0.15%. This marks the third consecutive day of losses, with the stock shedding 1.95% over this period.

Over longer time frames, the stock’s performance has been notably weak. It has declined by 41.04% over the past year, starkly contrasting with the Sensex’s 8.61% gain. The three-month return stands at -34.26%, while the one-month performance is down 8.89%, both significantly lagging the Sensex and the BSE500 benchmark. The stock has also failed to generate any returns over the past three and five years, while the Sensex has appreciated by 41.79% and 76.60% respectively during these periods.

Technical indicators further highlight the bearish trend, with the share price trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward momentum.

Financial Results and Profitability Metrics

The company’s recent quarterly results have been characterised by significant declines in key profitability indicators. Operating profit fell sharply by 48.83% in the quarter ending September 2025, contributing to a series of three consecutive quarters with negative results. Net sales for the quarter were recorded at ₹45.05 crores, the lowest level in recent periods.

Profit after tax (PAT) for the quarter stood at ₹4.98 crores, down 65.4% compared with the average of the previous four quarters. The operating profit to interest coverage ratio also deteriorated, reaching a low of 2.27 times, indicating tighter margins and increased pressure on the company’s ability to service debt obligations.

Despite these declines, the company’s return on capital employed (ROCE) remains at a relatively attractive 14.9%, and it maintains a low enterprise value to capital employed ratio of 1.2, suggesting valuation metrics that may be considered reasonable in isolation.

Institutional Investor Activity

Institutional investors have reduced their holdings in Deepak Builders & Engineers India Ltd by 1.09% over the previous quarter, now collectively holding just 2.78% of the company’s equity. This reduction in institutional participation is notable given these investors’ typically rigorous fundamental analysis capabilities. The decline in institutional stake may reflect concerns about the company’s recent financial trajectory and market positioning.

Long-Term Growth and Valuation Considerations

While recent quarters have been challenging, the company has demonstrated healthy long-term growth in operating profit, with an annualised growth rate of 51.41%. However, this growth has not translated into share price appreciation, as the stock has failed to generate positive returns over multiple years. Profit levels have also declined by 6% over the past year, further underscoring the disconnect between operational performance and market valuation.

The company’s market capitalisation grade is rated at 4, reflecting its micro-cap status within the construction sector. Its Mojo Score stands at 29.0, with a recent downgrade from a Sell to a Strong Sell rating on 18 Dec 2025, signalling a marked deterioration in the company’s overall assessment by MarketsMOJO’s proprietary scoring system.

Sector and Benchmark Comparison

Deepak Builders & Engineers India Ltd operates within the construction industry, a sector that has generally experienced mixed performance amid broader economic fluctuations. The stock’s underperformance relative to the Sensex and BSE500 indices over multiple time horizons highlights its divergence from broader market trends. While the Sensex has delivered gains of 3.67% over three months and 8.61% over one year, Deepak Builders has declined by 34.26% and 41.04% respectively over the same periods.

This persistent underperformance is further emphasised by the stock’s failure to generate any returns over three and five years, periods during which the Sensex appreciated by 41.79% and 76.60% respectively.

Summary of Key Metrics

To encapsulate the current state of Deepak Builders & Engineers India Ltd:

• Mojo Score: 29.0 (Strong Sell, downgraded from Sell on 18 Dec 2025)


• Market Cap Grade: 4 (micro-cap)


• Operating Profit decline: -48.83% in latest quarter


• PAT decline: -65.4% vs previous four-quarter average


• Operating Profit to Interest coverage: 2.27 times (lowest)


• Net Sales: ₹45.05 crores (lowest recent quarter)


• Institutional holding: 2.78%, down 1.09% from previous quarter


• Stock price near 52-week low: ₹115, just 0.52% above


• Returns over 1 year: -41.04% vs Sensex +8.61%


• Returns over 3 months: -34.26% vs Sensex +3.67%


• Returns over 3 and 5 years: 0.00% vs Sensex +41.79% and +76.60%

Conclusion

The stock of Deepak Builders & Engineers India Ltd has reached an unprecedented low, reflecting a combination of declining profitability, subdued sales, and reduced institutional confidence. Despite some positive long-term growth in operating profit and attractive valuation ratios, the company’s recent financial results and market performance have been unfavourable. The persistent underperformance relative to sector and benchmark indices underscores the challenges faced by the company in maintaining shareholder value.

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