Stock Performance and Market Context
On 16 Mar 2026, Deepak Builders & Engineers India Ltd’s share price closed just 1.17% above its 52-week low of ₹69, signalling a near-record trough. The stock recorded a day-on-day decline of 0.96%, contrasting with the Sensex’s modest gain of 0.23% on the same day. Despite this, the stock marginally outperformed its sector by 1.76% today, following a brief two-day recovery after consecutive falls.
However, the broader trend remains negative. Over the past month, the stock has lost 21.47%, significantly underperforming the Sensex’s 10.26% decline. The three-month performance is even more stark, with a 42.33% drop compared to the Sensex’s 11.74% fall. Year-to-date, the stock has declined by 41.20%, while the Sensex has fallen 12.30%. Over the last year, Deepak Builders & Engineers India Ltd has delivered a negative return of 49.26%, in sharp contrast to the Sensex’s positive 1.23% gain.
Longer-term figures reveal a lack of growth, with zero returns recorded over three, five, and ten-year periods, while the Sensex has appreciated by 29.67%, 48.39%, and 202.79% respectively. This highlights the company’s persistent underperformance relative to the broader market and its peers in the construction sector.
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Technical Indicators and Valuation Metrics
Technically, Deepak Builders & Engineers India Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent weakness in price levels indicates a lack of upward momentum and continued selling pressure.
The company’s market capitalisation is categorised as micro-cap, reflecting its relatively small size within the construction sector. Despite the subdued share price, the company maintains a Return on Capital Employed (ROCE) of 14.9%, which is considered attractive. Additionally, the enterprise value to capital employed ratio stands at a low 0.8, suggesting a valuation that may be appealing from a purely financial metric standpoint.
Financial Performance and Profitability
Deepak Builders & Engineers India Ltd has reported negative net profits for four consecutive quarters, underscoring the severity of its recent financial performance. The latest six-month Profit After Tax (PAT) stands at ₹10.15 crore, representing a decline of 67.61% compared to the previous period. This sharp contraction in profitability is a key factor behind the stock’s downward trajectory.
Interest expenses have increased by 32.62% in the latest quarter, reaching ₹7.44 crore. The operating profit to interest coverage ratio has deteriorated to 2.01 times, the lowest level recorded, indicating tighter margins and increased financial burden.
While the company has experienced a healthy long-term growth rate in operating profit at 51.41% annually, this has not translated into sustained profitability or share price appreciation in recent years. Over the past year, profits have declined by 6%, further reflecting the challenges faced by the company.
Shareholding and Market Position
The majority shareholding remains with the promoters, maintaining control over the company’s strategic direction. Despite this, the stock’s performance has lagged significantly behind the BSE500 index over the last three months, one year, and three years, indicating persistent underperformance relative to a broad market benchmark.
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Mojo Score and Rating
The company’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell as of 18 Dec 2025, upgraded from a previous Strong Sell rating. This reflects a slight improvement in outlook but remains indicative of caution. The downgrade in sentiment aligns with the company’s recent financial results and share price performance.
Overall, Deepak Builders & Engineers India Ltd’s stock has experienced a significant decline, reaching an all-time low amid a challenging environment. The combination of negative quarterly results, rising interest costs, and underwhelming returns relative to market indices has contributed to this position.
Summary of Key Metrics
• Latest six-month PAT: ₹10.15 crore, down 67.61%
• Quarterly interest expense: ₹7.44 crore, up 32.62%
• Operating profit to interest coverage: 2.01 times (lowest)
• Annual operating profit growth rate: 51.41%
• ROCE: 14.9%
• Enterprise value to capital employed: 0.8
• Market cap grade: Micro-cap
• Mojo Grade: Sell (upgraded from Strong Sell)
Conclusion
Deepak Builders & Engineers India Ltd’s stock performance reflects a prolonged period of financial and market challenges. The all-time low price level is a clear indicator of the company’s current standing within the construction sector and the broader market. While some valuation metrics remain attractive, the recent financial results and trend data highlight the severity of the situation faced by the company.
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