Stock Performance Overview
The construction sector stock has experienced a notable decline, with the price touching Rs.104.3 today, the lowest level recorded in its history. This drop represents a day’s loss of 3.59%, underperforming the Sensex which declined by 0.48% on the same day. The stock opened with a gap down of 2.26% and hit an intraday low of Rs.104.3, reflecting a 3.92% decrease during trading hours.
Over the past six consecutive trading sessions, Deepak Builders has lost 11.49% in returns, significantly underperforming its sector, which fell by 2.16% today. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
Comparative Performance Against Benchmarks
When compared to broader market indices, the stock’s underperformance is stark. Over one week, it declined by 10.67% versus the Sensex’s 2.65% fall. The one-month return stands at -12.61%, while the Sensex recorded a modest 2.46% decline. The three-month performance is particularly concerning, with Deepak Builders down 37.07%, contrasting with a 0.81% gain in the Sensex.
Longer-term figures reveal a 41.86% loss over the past year, while the Sensex gained 7.49%. Year-to-date, the stock has fallen 10.82%, compared to the Sensex’s 2.40% decline. Over three and five years, the stock has shown no appreciable gains, remaining flat at 0.00%, whereas the Sensex has delivered returns of 38.72% and 67.97% respectively. The ten-year performance also remains at zero, against the Sensex’s substantial 236.98% growth.
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Financial Results and Profitability Metrics
The company’s recent financial disclosures highlight a challenging environment. Operating profit has declined sharply by 48.83%, leading to a classification of very negative results for the quarter ending September 2025. This marks the third consecutive quarter of negative results, underscoring persistent difficulties.
Profit after tax (PAT) for the quarter stood at Rs.4.98 crore, down 65.4% compared to the previous four-quarter average. Operating profit to interest coverage ratio has dropped to a low of 2.27 times, signalling tighter financial conditions. Net sales for the quarter were Rs.45.05 crore, the lowest recorded in recent periods.
Institutional Investor Activity
Institutional investors have reduced their holdings by 1.09% over the previous quarter, now collectively holding 2.78% of the company’s shares. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
Long-Term Growth and Valuation Considerations
Despite recent setbacks, the company has demonstrated healthy long-term growth, with operating profit increasing at an annual rate of 51.41%. Return on capital employed (ROCE) remains at a respectable 14.9%, and the enterprise value to capital employed ratio is 1.1, indicating a valuation that some may consider attractive.
However, profit levels have decreased by 6% over the past year, aligning with the broader trend of declining returns. The stock’s performance over the last three and five years remains flat, contrasting with significant gains in the broader market indices.
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Mojo Score and Market Capitalisation
Deepak Builders & Engineers India Ltd currently holds a Mojo Score of 29.0, categorised as a Strong Sell. This represents a downgrade from its previous Sell rating as of 18 December 2025. The company’s market capitalisation grade stands at 4, reflecting its micro-cap status within the construction sector.
The stock’s recent underperformance relative to the Sensex and its sector peers, combined with deteriorating financial results, has contributed to this rating adjustment.
Sector Context and Market Conditions
The construction and real estate sector has experienced a decline of 2.16% today, indicating broader market pressures. However, Deepak Builders’ 3.59% drop and longer-term negative returns significantly exceed sector averages, highlighting company-specific factors influencing its share price.
Trading below all major moving averages further emphasises the stock’s current weakness relative to market trends.
Summary of Key Metrics
To summarise, the stock’s key performance indicators include:
- All-time low price of Rs.104.3 reached on 12 January 2026
- Six consecutive days of negative returns totalling -11.49%
- One-year return of -41.86% versus Sensex gain of 7.49%
- Operating profit decline of 48.83% in the latest quarter
- PAT down 65.4% to Rs.4.98 crore in the latest quarter
- Institutional investor stake reduced to 2.78%
- Mojo Score downgraded to 29.0 with a Strong Sell rating
These figures collectively illustrate the severity of the stock’s current position within the market and its sector.
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