Stock Performance Overview
On 25 Feb 2026, Deepak Builders & Engineers India Ltd closed near its 52-week low, just 0.74% above the lowest price of Rs 80 recorded during this period. The stock declined by 3.17% on the day, underperforming the Sensex, which gained 0.58%. This marks the sixth consecutive day of losses, with the stock returning -11.47% over this span.
Over longer durations, the stock’s performance has been notably weak. It has delivered a negative return of -46.56% over the past year, compared to the Sensex’s positive 10.86% gain. The underperformance extends to the three-month period with a decline of -40.92% versus the Sensex’s -2.23%, and year-to-date returns stand at -32.56%, while the Sensex has fallen by only -2.96%. The stock has also lagged the BSE500 index over the last three years, showing no appreciable gains, while the Sensex has surged 39.08% in the same period.
Technical indicators reflect a bearish trend, with the stock trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. The intraday high on the latest trading session was Rs 83.75, representing a modest 2.47% gain from the previous close, but this was insufficient to offset the broader downward momentum.
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Financial Metrics and Profitability
Deepak Builders & Engineers India Ltd has reported negative net profits for four consecutive quarters, reflecting ongoing pressures on its earnings. The latest six-month period saw the company’s profit after tax (PAT) decline by 67.61% to Rs 10.15 crore. Meanwhile, interest expenses have increased by 32.62% in the most recent quarter, reaching Rs 7.44 crore. This rise in interest costs has contributed to a reduced operating profit to interest coverage ratio, which currently stands at a low 2.01 times, indicating tighter financial cushioning against debt servicing obligations.
Despite these challenges, the company’s operating profit has demonstrated a healthy long-term growth rate, expanding at an annualised rate of 51.41%. This suggests that while recent profitability has been under pressure, the underlying business has shown capacity for expansion in operating earnings over a longer horizon.
Return on capital employed (ROCE) remains at a respectable 14.9%, and the enterprise value to capital employed ratio is 0.9, signalling a valuation that could be considered attractive relative to the company’s capital base.
Shareholding and Market Position
The majority ownership of Deepak Builders & Engineers India Ltd rests with its promoters, maintaining a concentrated shareholding structure. The company operates within the construction industry, a sector that has experienced mixed performance amid broader economic fluctuations.
Market cap grading assigns the company a score of 4, while the overall Mojo Score stands at 31.0, with a current Mojo Grade of Sell. This represents a slight improvement from the previous Strong Sell rating, which was downgraded on 18 Dec 2025.
Comparative Market Context
When benchmarked against the Sensex and sector indices, Deepak Builders & Engineers India Ltd has consistently underperformed. The sector itself has shown modest gains, but the stock’s returns have lagged by significant margins across all measured time frames. Over five and ten years, the stock has not recorded appreciable gains, remaining flat, while the Sensex has delivered returns of 62.03% and 259.94% respectively.
This persistent underperformance highlights the severity of the stock’s decline relative to broader market trends and sector peers.
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Summary of Key Indicators
Deepak Builders & Engineers India Ltd’s recent financial and market data paint a picture of a company facing significant headwinds. The stock’s proximity to its 52-week low, combined with a six-day losing streak and steep declines over one month (-15.49%) and three months (-40.92%), underscore the extent of the downward pressure.
Profitability metrics reveal a contraction in net earnings and rising interest costs, which have compressed coverage ratios. While operating profit growth remains robust on an annualised basis, this has not translated into improved bottom-line results in the near term.
Valuation metrics such as ROCE and enterprise value to capital employed suggest some underlying value, but these have not been sufficient to arrest the stock’s decline amid broader market and sector dynamics.
The company’s Mojo Grade of Sell, following a downgrade from Strong Sell in December 2025, reflects the cautious stance adopted by rating frameworks in light of these developments.
Conclusion
Deepak Builders & Engineers India Ltd’s fall to an all-time low marks a significant milestone in its recent market journey. The stock’s sustained underperformance relative to the Sensex and sector benchmarks, combined with deteriorating profitability and rising interest expenses, highlight the challenges faced by the company. While certain long-term growth indicators remain positive, the prevailing financial and market conditions have resulted in a marked decline in shareholder value over the past year and beyond.
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