Deepak Builders & Engineers India Ltd Hits All-Time Low Amidst Continued Decline

Stock Performance and Market Context

On 19 Jan 2026, Deepak Builders & Engineers India Ltd recorded a day decline of 1.36%, underperforming the Sensex which fell by 0.45%. The stock has been on a downward trajectory for two consecutive days, losing approximately 3% in returns during this period. This underperformance extends over longer time frames as well, with the stock falling 2.63% over the past week compared to the Sensex’s 0.81% decline.

More notably, the stock has declined 13.24% over the last month, significantly lagging behind the Sensex’s 2.04% fall. Over three months, the stock’s performance has deteriorated sharply by 32.38%, while the Sensex remained relatively stable with a marginal 0.90% decline. The year-to-date return stands at -13.17%, compared to the Sensex’s -2.37%.

Longer-term figures reveal a stark contrast with benchmark indices. Over the past year, Deepak Builders & Engineers India Ltd has delivered a negative return of 40.43%, whereas the Sensex has appreciated by 8.59%. The stock has shown no growth over three and five years, while the Sensex has gained 36.71% and 68.42% respectively. Over a decade, the Sensex surged 239.86%, highlighting the company’s relative underperformance.

Technical Indicators and Moving Averages

Technically, the stock is trading below all major moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates sustained bearish momentum and a lack of upward price support in the near term. The stock’s underperformance relative to its sector by 0.91% on the day further emphasises its weak market standing.

Financial Results and Profitability Metrics

The company’s recent financial disclosures reveal a challenging environment. Operating profit has declined sharply by 48.83%, contributing to a very negative result declared in September 2025. This marks the third consecutive quarter of negative results, underscoring persistent difficulties in maintaining profitability.

Quarterly net sales have fallen drastically to Rs.45.05 crores, representing a 69.1% decrease compared to the previous four-quarter average. Correspondingly, the profit after tax (PAT) for the quarter stood at Rs.4.98 crores, down 65.4% from the prior four-quarter average. The operating profit to interest coverage ratio has also deteriorated, reaching a low of 2.27 times, indicating tighter margins and increased financial strain.

Long-Term Growth and Valuation

Despite recent setbacks, the company has demonstrated healthy long-term growth in operating profit, with an annualised growth rate of 51.41%. Return on capital employed (ROCE) remains at a respectable 14.9%, and the enterprise value to capital employed ratio stands at 1.1, suggesting a valuation that some may consider attractive relative to capital utilisation.

However, the stock’s price performance and profitability over the past year have not reflected these fundamentals, with profits declining by 6% and the stock price falling by over 40%. This divergence highlights the market’s cautious stance towards the company’s near-term prospects.

Shareholding and Market Grade

The majority shareholding remains with promoters, maintaining control over corporate decisions. The company’s Mojo Score is 29.0, with a Mojo Grade of Strong Sell as of 18 Dec 2025, downgraded from a previous Sell rating. The market capitalisation grade is 4, reflecting its micro-cap status within the construction sector.

Summary of Performance Relative to Benchmarks

Deepak Builders & Engineers India Ltd’s performance has been below par across multiple time horizons. The stock has underperformed the BSE500 index over the last three years, one year, and three months. This persistent underperformance is reflected in the stock’s stagnant price over three and five years, contrasting sharply with the broader market’s robust gains.

The combination of declining sales, shrinking profits, and a deteriorated operating profit to interest ratio has contributed to the stock’s current valuation and market sentiment. While the company’s long-term operating profit growth and valuation metrics offer some positive context, these have not translated into price appreciation or improved financial results in recent quarters.

Conclusion

Deepak Builders & Engineers India Ltd’s fall to an all-time low of Rs.101.55 marks a significant milestone in its recent market journey. The stock’s sustained underperformance relative to sector peers and benchmark indices, coupled with consecutive quarters of negative financial results, paints a comprehensive picture of the challenges faced. The company’s financial metrics and market grades reflect a cautious stance, with the Mojo Grade currently at Strong Sell. This situation underscores the importance of closely monitoring the company’s financial disclosures and market developments going forward.

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