Stock Performance Overview
On the day of the decline, Deepak Builders & Engineers India Ltd’s share price fell by 2.19%, underperforming the Sensex which dipped marginally by 0.12%. The stock has been on a downward trajectory for two consecutive sessions, losing 2.59% over this period. Intraday, the share touched its lowest-ever price of Rs. 91.6, breaching all previous support levels.
The stock’s weakness is further underscored by its position below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.
Over various time horizons, the stock’s performance starkly contrasts with the broader market. In the past one month, Deepak Builders has declined by 23.25%, compared to a 4.24% fall in the Sensex. The three-month return is even more pronounced, with a 40.54% drop versus a modest 3.94% decline in the benchmark. Over the last year, the stock has lost 44.32%, while the Sensex has gained 8.05%. Year-to-date, the stock is down 21.94%, significantly lagging the Sensex’s 4.44% fall.
Financial Results and Profitability Metrics
The company’s recent quarterly results have been notably weak, contributing to the stock’s decline. Net sales for the quarter stood at Rs. 45.05 crores, down 69.1% compared to the average of the previous four quarters. Profit after tax (PAT) also contracted sharply by 65.4% to Rs. 4.98 crores over the same period.
Operating profit has seen a steep fall of 48.83%, leading to the company declaring very negative results in September 2025. The operating profit to interest coverage ratio has dropped to a low of 2.27 times, indicating tighter margins and increased financial pressure.
These results mark the third consecutive quarter of negative financial outcomes, highlighting a sustained period of subdued earnings performance.
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Long-Term and Sector Comparison
Deepak Builders & Engineers India Ltd’s long-term returns have been underwhelming. Over the past three and five years, the stock has delivered no appreciable gains, standing at 0.00%, while the Sensex has surged 37.26% and 71.77% respectively. Over a decade, the stock remains flat, contrasting sharply with the Sensex’s 232.50% rise.
In the shorter term, the stock has underperformed the BSE500 index across multiple periods, including the last three months, one year, and three years, reflecting persistent relative weakness within the construction sector.
Valuation and Financial Health
Despite the recent setbacks, the company maintains a return on capital employed (ROCE) of 14.9%, which is considered attractive within the industry. Its enterprise value to capital employed ratio stands at 1, indicating a valuation that may be reasonable relative to its capital base.
However, profitability has declined over the past year, with profits falling by 6%, compounding the pressure on the stock price. The company’s market capitalisation grade is rated 4, reflecting its micro-cap status and associated liquidity considerations.
Ownership and Market Sentiment
The majority shareholding remains with promoters, who continue to hold a controlling stake in the company. The stock’s Mojo Score is 29.0, with a Mojo Grade of Strong Sell as of 18 Dec 2025, downgraded from Sell, signalling a cautious stance from rating agencies based on recent performance metrics.
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Summary of Key Metrics
To summarise, Deepak Builders & Engineers India Ltd’s stock has reached an unprecedented low of Rs. 91.6, reflecting a combination of sharply declining sales, reduced profitability, and sustained underperformance relative to market benchmarks. The company’s financial results over recent quarters have been consistently negative, with operating profit and PAT falling significantly.
While valuation metrics such as ROCE and enterprise value to capital employed remain relatively attractive, the stock’s price action and rating downgrades underscore the severity of the current situation. The stock’s performance over multiple time frames highlights a challenging environment for the company within the construction sector.
Market Context and Sector Dynamics
The construction sector has faced headwinds in recent periods, with many companies experiencing pressure on margins and sales volumes. Deepak Builders & Engineers India Ltd’s performance is emblematic of these broader sectoral trends, compounded by company-specific factors that have weighed on investor sentiment and share price.
Given the stock’s current position below all major moving averages and its significant underperformance against the Sensex and BSE500, the market context remains difficult for the company.
Conclusion
Deepak Builders & Engineers India Ltd’s fall to an all-time low marks a notable event in the construction sector’s market landscape. The stock’s steep decline is supported by a series of disappointing financial results and a downgrade to a Strong Sell rating. The company’s valuation metrics offer some counterbalance, but the prevailing market and financial indicators reflect a challenging phase for the stock.
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