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

Recent Price Movements and Market Context

On 9 Jan 2026, Deepak Builders & Engineers India Ltd recorded a closing price of Rs.111.4, the lowest in its trading history. This represents a day-on-day decline of 1.19%, considerably underperforming the Sensex, which fell by 0.14% on the same day. The stock has experienced a consecutive five-day losing streak, resulting in a cumulative return of -4.79% over this period. Over the past week, the stock has declined by 4.83%, compared to the Sensex’s 1.98% drop, and over the last month, it has fallen 7.73%, while the Sensex remained relatively stable with a 0.71% decrease.

More notably, the three-month performance shows a steep decline of 33.55%, contrasting sharply with the Sensex’s positive return of 2.30%. The one-year performance further highlights the stock’s difficulties, with a negative return of 38.69%, while the Sensex gained 8.30% over the same period. Year-to-date, the stock has lost 4.39%, underperforming the Sensex’s 1.36% decline. Over longer horizons, the stock has failed to generate any returns in three, five, and ten-year periods, standing at 0.00%, while the Sensex has delivered 38.38%, 72.32%, and 237.14% respectively.

Technical Indicators Signal Weak Momentum

Technical analysis reveals that Deepak Builders is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across short, medium, and long-term technical indicators underscores the persistent downward momentum in the stock price. The stock’s underperformance relative to its construction sector peers, with a sector underperformance of 0.87% on the latest trading day, further emphasises the challenges faced by the company in regaining investor confidence.

Financial Performance and Profitability Trends

The company’s recent quarterly results have been notably subdued. Operating profit declined sharply by 48.83% in the quarter ended September 2025, contributing to a series of negative results over the last three consecutive quarters. Net sales for the quarter stood at Rs.45.05 crores, the lowest recorded in recent periods. Profit after tax (PAT) for the quarter was Rs.4.98 crores, representing a steep fall of 65.4% compared to the average of the previous four quarters.

Operating profit to interest coverage ratio has also deteriorated, reaching a low of 2.27 times, indicating tighter margins for servicing debt obligations. These financial metrics collectively reflect a contraction in core profitability and operational efficiency.

Institutional Investor Sentiment

Institutional investors have reduced their holdings by 1.09% over the previous quarter, now collectively holding a modest 2.78% stake in the company. Given their superior analytical capabilities and resources, this reduction signals a cautious stance towards the company’s current fundamentals and outlook.

Long-Term Performance and Valuation Metrics

Despite the recent downturn, Deepak Builders & Engineers India Ltd has demonstrated healthy long-term growth in operating profit, with an annualised growth rate of 51.41%. The company’s 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 1.2. However, these positives have not translated into share price appreciation, as profits have declined by 6% over the past year, coinciding with the stock’s 38.69% negative return.

Comparative Market Performance

The stock’s performance relative to broader market indices and sector benchmarks has been consistently below par. It has underperformed the BSE500 index over the last three months, one year, and three years, highlighting persistent challenges in regaining market traction. This underperformance is evident despite the company’s underlying operational growth and valuation metrics, suggesting that market sentiment remains subdued.

Mojo Score and Analyst Ratings

Deepak Builders & Engineers India Ltd currently holds a Mojo Score of 29.0, categorised as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 18 Dec 2025, reflecting a reassessment of the company’s deteriorating fundamentals and market position. The company’s market capitalisation grade is 4, indicating a relatively small market cap within its sector. These ratings are part of the MarketsMOJO framework, which integrates multiple parameters including fundamentals, technical momentum, and valuation to provide a comprehensive assessment.

Summary of Key Metrics

To summarise, the stock’s recent performance metrics are as follows:

• All-time low price: Rs.111.4


• Day change: -1.19%


• 5-day return: -4.79%


• 1-month return: -7.73%


• 3-month return: -33.55%


• 1-year return: -38.69%


• Operating profit decline (Sep 25 quarter): -48.83%


• PAT decline (Sep 25 quarter): -65.4%


• Operating profit to interest coverage ratio: 2.27 times


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

Conclusion

The stock of Deepak Builders & Engineers India Ltd has reached a historic low, reflecting a combination of subdued financial results, declining investor participation, and persistent underperformance relative to market benchmarks. While the company maintains some positive long-term growth indicators and attractive valuation metrics, these have not been sufficient to arrest the downward trend in its share price. The recent downgrade to a Strong Sell rating by MarketsMOJO underscores the severity of the current situation.

Investors and market participants will continue to monitor the company’s financial disclosures and market movements closely as the stock navigates this challenging phase.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →