Recent Price Movements and Market Context
On 27 Feb 2026, Deepak Builders & Engineers India Ltd recorded an intraday low of Rs. 76.31, a decline of 3.00% from the previous close. The stock also touched an intraday high of Rs. 80.45, representing a 2.26% increase during the session, but ultimately closed down by 3.23%. This underperformance was more pronounced than the Sensex’s decline of 0.71% on the same day. Over the past eight consecutive trading days, the stock has lost 15.18% in value, underscoring a sustained negative momentum.
The stock’s current price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish trend across multiple timeframes. Relative to its construction sector peers, Deepak Builders underperformed by 0.69% on the day, continuing a pattern of lagging sector performance.
Long-Term Performance Analysis
Examining the stock’s performance over extended periods reveals a challenging scenario. Over the last one year, Deepak Builders & Engineers India Ltd has delivered a negative return of 47.64%, in stark contrast to the Sensex’s positive 9.45% gain. Year-to-date, the stock has declined by 35.13%, while the Sensex fell by only 4.17%. The underperformance extends to the three-month period as well, with the stock down 42.95% compared to the Sensex’s 4.73% decline.
Notably, the stock has shown no appreciable gains over the past three, five, and ten years, with returns flat at 0.00%, while the Sensex has delivered robust gains of 37.74%, 66.32%, and 252.70% respectively over these periods. This long-term stagnation highlights the company’s inability to generate shareholder value in line with broader market trends.
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Financial Metrics and Profitability Trends
Deepak Builders & Engineers India Ltd has reported negative results for four consecutive quarters, reflecting ongoing pressures on profitability. The company’s profit after tax (PAT) for the latest six-month period stands at Rs. 10.15 crore, representing a decline of 67.61% compared to the previous corresponding period. This sharp contraction in net earnings is a key factor behind the stock’s subdued performance.
Interest expenses have increased by 32.62% in the latest quarter, reaching Rs. 7.44 crore. The operating profit to interest ratio has deteriorated to a low of 2.01 times, indicating tighter coverage of interest obligations by operating earnings. This metric is critical in assessing the company’s ability to service debt from its core operations.
Valuation and Capital Efficiency
Despite the challenges, the company maintains a return on capital employed (ROCE) of 14.9%, which is considered a reasonable level of capital efficiency within the construction sector. The enterprise value to capital employed ratio stands at 0.9, suggesting a valuation that may be attractive relative to the company’s capital base.
Operating profit has exhibited a healthy annual growth rate of 51.41%, indicating that the company has managed to expand its core earnings before interest and tax over the longer term. However, this growth has not translated into net profit gains, as evidenced by the 6% decline in profits over the past year.
Shareholding and Market Sentiment
The majority shareholding remains with the company’s promoters, who continue to hold a controlling stake. The stock’s Mojo Score is 31.0, with a Mojo Grade of Sell as of 18 Dec 2025, downgraded from a previous Strong Sell rating. The Market Capitalisation Grade is 4, reflecting a relatively small market cap within the construction sector universe.
Comparative Sector and Market Performance
When benchmarked against the BSE500 index, Deepak Builders & Engineers India Ltd has underperformed consistently over the last three years, one year, and three months. This persistent lag highlights the stock’s relative weakness within the broader market and its sector peers.
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Summary of Current Situation
The stock’s decline to an all-time low of Rs. 76.31 is the culmination of a prolonged period of underperformance, marked by deteriorating profitability, rising interest costs, and sustained negative returns relative to market benchmarks. While operating profit growth remains positive, the company’s net earnings and share price have not reflected this trend.
Trading below all major moving averages and with a Mojo Grade of Sell, Deepak Builders & Engineers India Ltd faces a challenging environment in terms of market valuation and financial metrics. The stock’s performance over multiple time horizons underscores the severity of its current position within the construction sector.
Outlook on Market Position
Although the company maintains a reasonable ROCE and an enterprise value to capital employed ratio below one, these factors have not been sufficient to arrest the stock’s decline. The increase in interest expenses and the low operating profit to interest coverage ratio highlight financial pressures that have contributed to the stock’s subdued market performance.
Overall, Deepak Builders & Engineers India Ltd’s stock price reflects a combination of weak earnings growth, elevated financing costs, and persistent underperformance relative to sector and market indices.
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