Stock Performance Overview
On 26 Feb 2026, Deepak Builders & Engineers India Ltd closed just 0.7% above its 52-week low of ₹79.14, marking a critical point in its trading history. The stock has been on a downward trajectory for seven consecutive trading sessions, losing 12.46% in that span alone. This recent decline is part of a broader trend, with the stock underperforming the Sensex and its construction sector peers consistently.
In the last trading day, the stock fell by 1.29%, compared to a modest 0.18% decline in the Sensex. Over the past week, the stock dropped 8.79%, while the Sensex declined by only 0.45%. The one-month performance shows a sharper contrast, with Deepak Builders down 15.63% against a 0.72% gain in the Sensex. The three-month return is particularly stark, with the stock tumbling 41.73% versus a 4.07% fall in the benchmark index.
Year-to-date, the stock has lost 32.67%, significantly underperforming the Sensex’s 3.63% decline. Over the last year, Deepak Builders & Engineers India Ltd has delivered a negative return of 46.65%, while the Sensex has gained 10.09%. The stock’s three- and five-year returns remain at zero, contrasting sharply with the Sensex’s 38.11% and 67.26% gains respectively. Over a decade, the Sensex has surged 254.69%, underscoring the stock’s prolonged underperformance.
Technical Indicators and Moving Averages
Technically, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a bearish trend. This persistent weakness in price action highlights the challenges the company faces in regaining investor confidence and market momentum.
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Financial Performance and Profitability Metrics
Deepak Builders & Engineers India Ltd has reported negative net profits for four consecutive quarters, reflecting ongoing financial pressures. The latest six-month period saw the company’s profit after tax (PAT) decline by 67.61% to ₹10.15 crores. Meanwhile, interest expenses have increased by 32.62% to ₹7.44 crores in the same period, exerting additional strain on earnings.
The company’s operating profit to interest coverage ratio has deteriorated to 2.01 times, the lowest recorded, indicating tighter margins for servicing debt obligations. Despite these headwinds, the company’s operating profit has grown at an annual rate of 51.41%, suggesting some underlying operational scale, though this has not translated into net profitability.
Valuation and Capital Efficiency
From a valuation standpoint, Deepak Builders & Engineers India Ltd presents a very attractive profile with a return on capital employed (ROCE) of 14.9% and an enterprise value to capital employed ratio of 0.9. These metrics indicate efficient use of capital relative to enterprise value, a factor that contrasts with the stock’s weak price performance.
However, the company’s profits have declined by 6% over the past year, which, combined with the stock’s steep price fall, reflects investor concerns about earnings sustainability and growth prospects.
Shareholding and Market Sentiment
The majority shareholding remains with the promoters, who continue to hold a controlling stake. The stock’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, downgraded from Strong Sell on 18 Dec 2025. The Market Cap Grade is 4, indicating a relatively modest market capitalisation within its sector.
Comparative Market Context
Deepak Builders & Engineers India Ltd’s performance has lagged not only the Sensex but also the BSE500 index over the last three months, one year, and three years. This underperformance highlights the stock’s challenges in keeping pace with broader market and sectoral trends.
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Summary of Key Metrics
To summarise, Deepak Builders & Engineers India Ltd is currently trading near historic lows, with a seven-day losing streak and significant underperformance relative to the Sensex and its sector. The company’s financial results have shown declining profitability, increased interest costs, and a low operating profit to interest coverage ratio. Despite a strong operating profit growth rate and attractive capital efficiency metrics, the stock’s price performance and Mojo Grade reflect prevailing market caution.
These factors collectively illustrate the severity of the current situation for Deepak Builders & Engineers India Ltd within the construction sector.
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