Deepak Builders & Engineers India Ltd Hits All-Time Low Amidst Prolonged Downtrend

Recent Price Movement and Market Context

On 21 Jan 2026, Deepak Builders & Engineers India Ltd recorded its lowest-ever share price at Rs.94.6, reflecting a continuation of a downward trajectory that has persisted over the past year. Despite a slight gain of 0.10% on the day, the stock remains substantially below its key moving averages, trading beneath the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning underscores the prevailing bearish sentiment surrounding the stock.

Relative to the broader market, the stock’s performance has been notably weak. Over the last one year, Deepak Builders has delivered a negative return of -42.91%, in stark contrast to the Sensex’s positive 8.22% gain over the same period. The divergence is even more pronounced over shorter intervals, with the stock falling -38.77% in three months compared to the Sensex’s modest -2.79% decline. Year-to-date figures also highlight the stock’s underperformance, with a -17.85% return against the Sensex’s -3.70%.

Longer-term comparisons further illustrate the stock’s challenges. Over three and five years, Deepak Builders has generated no appreciable returns, standing at 0.00%, while the Sensex has surged by 35.38% and 65.38% respectively. The ten-year performance gap is even wider, with the Sensex up 242.50% over the decade.

Financial Performance and Profitability Metrics

The company’s recent financial disclosures reveal a marked deterioration in key profitability indicators. Operating profit has contracted sharply by -48.83%, contributing to what MarketsMOJO classifies as Very Negative results for the quarter ending September 2025. This marks the third consecutive quarter of negative results, signalling sustained pressure on earnings.

Net sales for the quarter stood at Rs.45.05 crores, a steep decline of -69.1% compared to the average of the previous four quarters. Correspondingly, profit after tax (PAT) fell by -65.4% to Rs.4.98 crores over the same comparative period. The operating profit to interest coverage ratio has also reached a low of 2.27 times, indicating tighter margins and increased financial strain.

Despite these setbacks, the company maintains a return on capital employed (ROCE) of 14.9%, which is considered a very attractive valuation metric. The enterprise value to capital employed ratio stands at 1, suggesting that the stock is trading at a valuation level that reflects its capital base.

Trend Analysis and Sector Comparison

Deepak Builders & Engineers India Ltd’s stock has underperformed not only the Sensex but also the BSE500 index over multiple time horizons. Over the past three years, the stock has failed to generate any returns, while the BSE500 has delivered positive gains. This underperformance extends to the one-year and three-month periods as well, highlighting persistent challenges in maintaining competitive growth within the construction sector.

On the day of the all-time low, the stock outperformed its sector by 0.51%, a modest relative gain that does little to offset the broader downtrend. The day change registered a decline of -0.36%, reflecting ongoing volatility and investor caution.

Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.

Long-Term Growth and Valuation Considerations

While recent quarters have been challenging, the company has demonstrated healthy long-term growth in operating profit, with an annualised growth rate of 51.41%. This suggests that despite near-term setbacks, the underlying business has shown capacity for expansion over a longer horizon.

However, this growth has not translated into share price appreciation or consistent profitability, as evidenced by a -6% decline in profits over the past year alongside a -43.17% return in stock price. This disconnect highlights the complexities faced by the company in converting operational gains into shareholder value.

Overall, the stock’s Mojo Score stands at 29.0, categorised as a Strong Sell, a downgrade from its previous Sell rating as of 18 Dec 2025. The Market Cap Grade is 4, reflecting its micro-cap status within the construction sector.

Summary of Key Metrics

• New 52-week and all-time low price: Rs.94.6

• 1-day performance: +0.10% vs Sensex -0.13%

• 1-week performance: -8.19% vs Sensex -1.57%

• 1-month performance: -17.92% vs Sensex -3.37%

• 3-month performance: -38.77% vs Sensex -2.79%

• 1-year performance: -42.91% vs Sensex +8.22%

• Year-to-date performance: -17.85% vs Sensex -3.70%

• Operating profit decline (quarterly): -48.83%

• Net sales decline (quarterly): -69.1%

• PAT decline (quarterly): -65.4%

• Operating profit to interest coverage ratio: 2.27 times

• ROCE: 14.9%

• Mojo Score: 29.0 (Strong Sell)

• Market Cap Grade: 4

Conclusion

Deepak Builders & Engineers India Ltd’s stock reaching an all-time low of Rs.94.6 reflects a sustained period of financial and market challenges. The company’s recent quarterly results have shown significant declines in sales and profitability, contributing to a Strong Sell rating by MarketsMOJO. Despite some positive long-term operating profit growth and attractive valuation metrics, the stock’s performance remains subdued relative to broader market indices and sector peers. The current market environment and financial indicators underscore the severity of the situation faced by the company.

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