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

Stock Performance Overview

The stock price of Deepak Builders & Engineers India Ltd declined by 0.71% on 30 Jan 2026, underperforming the Sensex which fell by 0.40% on the same day. This drop brought the share price to Rs.89.85, the lowest level recorded in its history. The stock has been on a losing streak for two consecutive days, accumulating a total loss of 2.16% during this period.

Over longer time frames, the stock’s performance has been notably weak. In the past week, it declined by 3.10% while the Sensex gained 0.85%. The one-month return stands at -21.70%, significantly worse than the Sensex’s -2.88%. The three-month performance is even more pronounced, with a 40.92% drop compared to the Sensex’s modest 2.57% decline.

Year-to-date, the stock has fallen 22.67%, while the Sensex has declined by 3.50%. Over the last year, Deepak Builders & Engineers India Ltd has delivered a negative return of 46.00%, in stark contrast to the Sensex’s positive 7.13% gain. The stock has also failed to generate any returns over the past three and five years, remaining flat at 0.00%, while the Sensex has surged 38.21% and 77.67% respectively over these periods. The ten-year performance similarly shows no appreciation, with the stock stagnant against the Sensex’s 230.65% rise.

Technical Indicators and Moving Averages

< stock is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained bearish momentum and a lack of short- to medium-term recovery signals.

Financial Results and Profitability Metrics

Deepak Builders & Engineers India Ltd’s recent quarterly results have been notably weak. The company reported a sharp decline in operating profit by 48.83% in the quarter ending September 2025, which contributed to a "Very Negative" rating for that period. This marks the third consecutive quarter of negative results, highlighting persistent difficulties in maintaining profitability.

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 fell significantly by 65.4% to Rs.4.98 crores over the same comparative period. The operating profit to interest coverage ratio dropped to a low of 2.27 times, indicating tighter margins and increased financial strain.

Long-Term and Sectoral Performance

Despite recent setbacks, the company has demonstrated healthy long-term growth in operating profit, with an annual growth rate of 51.41%. Its return on capital employed (ROCE) remains at a respectable 14.9%, and the enterprise value to capital employed ratio is at 1, suggesting an attractive valuation on certain fundamental metrics.

However, the stock’s long-term price performance has not reflected these fundamentals, as it has underperformed the BSE500 index over the last three years, one year, and three months. This divergence between operational growth and market valuation underscores the challenges faced by the company in translating financial metrics into shareholder returns.

Shareholding and Market Sentiment

The majority shareholding remains with the promoters, indicating concentrated ownership. The company’s Mojo Score currently stands at 29.0, with a Mojo Grade of Strong Sell as of 18 Dec 2025, downgraded from Sell. The Market Cap Grade is rated 4, reflecting the company’s relatively modest market capitalisation within the construction sector.

Sector Context and Relative Performance

Within the construction sector, Deepak Builders & Engineers India Ltd’s recent performance has been in line with sector trends on the day of the all-time low, but its longer-term returns have lagged significantly behind broader market indices. The stock’s underperformance relative to the Sensex and BSE500 indices over multiple time horizons highlights the challenges faced in regaining investor confidence and market momentum.

While the company’s valuation metrics such as ROCE and enterprise value to capital employed suggest some underlying value, the persistent declines in sales, profits, and share price indicate ongoing pressures that have yet to be resolved.

Summary of Key Metrics

To summarise, Deepak Builders & Engineers India Ltd’s key financial and market metrics as of 30 Jan 2026 are:

• All-time low share price: Rs.89.85
• Mojo Score: 29.0 (Strong Sell)
• Operating profit decline (Sep 25 quarter): -48.83%
• Net sales decline (quarterly): -69.1%
• PAT decline (quarterly): -65.4%
• Operating profit to interest coverage: 2.27 times
• ROCE: 14.9%
• Enterprise value to capital employed: 1
• Market Cap Grade: 4
• Share price returns (1 year): -46.00%
• Share price returns (3 years): 0.00%

These figures collectively illustrate the extent of the company’s recent difficulties and the subdued market response.

Conclusion

Deepak Builders & Engineers India Ltd’s fall to an all-time low of Rs.89.85 marks a significant point in its share price history, reflecting a sustained period of financial contraction and market underperformance. The company’s recent quarterly results, including steep declines in sales and profits, have contributed to a Strong Sell rating and a low Mojo Score. Despite some positive long-term operating profit growth and attractive valuation metrics, the stock’s performance relative to major indices and sector peers remains subdued. The concentrated promoter ownership and current market capitalisation grade further contextualise the company’s position within the construction sector.

Investors and market participants will continue to monitor the stock’s trajectory amid these challenging conditions.

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