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

Stock Price and Market Performance Overview

On 24 Feb 2026, Deepak Builders & Engineers India Ltd recorded a closing price of Rs.82.39, the lowest in its trading history. This new 52-week low coincides with a day change of -0.62%, which, while negative, was slightly better than the Sensex’s decline of -0.91% on the same day. Despite this marginal outperformance on the day, the stock’s longer-term trends reveal a more challenging picture.

Over the past week, the stock has fallen by 8.12%, significantly underperforming the Sensex’s modest decline of 1.10%. The one-month performance shows a sharper drop of 10.89%, contrasting with the Sensex’s positive return of 1.22%. The three-month decline is even more pronounced at 37.96%, compared to the Sensex’s 2.79% fall. Most notably, the stock has lost 44.59% over the last year, while the Sensex gained 10.85% during the same period.

Year-to-date, Deepak Builders has declined by 29.32%, far exceeding the Sensex’s 3.15% fall. The stock’s three- and five-year returns stand at 0.00%, indicating stagnation, whereas the Sensex has delivered 38.80% and 62.53% returns respectively over these periods. Over a decade, the Sensex’s growth of 257.47% further highlights the stock’s relative underperformance.

Technical Indicators and Trend Analysis

Technically, Deepak Builders is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests sustained downward momentum. However, the stock has shown a minor reversal by gaining after four consecutive days of decline, though this has yet to translate into a sustained recovery.

Financial Performance and Profitability Metrics

Deepak Builders & Engineers India Ltd has reported negative results for four consecutive quarters, underscoring the severity of its financial situation. The company’s profit after tax (PAT) for the latest six months stands at Rs.10.15 crores, reflecting a decline of 67.61% compared to the previous period. This significant contraction in profitability is a key factor behind the stock’s downward trajectory.

Interest expenses have increased by 32.62% in the latest quarter, reaching Rs.7.44 crores. The operating profit to interest ratio has deteriorated to a low of 2.01 times, indicating tighter coverage of interest obligations by operating earnings. This ratio is a critical measure of financial health, and its decline signals increased pressure on the company’s earnings to service debt.

Long-Term Growth and Valuation Considerations

Despite recent setbacks, the company has demonstrated healthy long-term growth in operating profit, which has increased at an annual rate of 51.41%. This growth rate suggests that the company has had periods of operational expansion, although this has not translated into sustained profitability or shareholder returns in recent years.

Return on capital employed (ROCE) is reported at 14.9%, which is considered a reasonable level of capital efficiency. Additionally, the enterprise value to capital employed ratio stands at 0.9, indicating a valuation that may be attractive relative to the company’s capital base. However, these metrics have not prevented the stock from experiencing significant price declines.

Shareholding and Market Grade

The majority shareholding is held by promoters, which often implies concentrated ownership and potential influence over corporate decisions. The company’s Mojo Score is 31.0, with a Mojo Grade of Sell as of 18 Dec 2025, downgraded from a previous Strong Sell rating. The Market Capitalisation Grade is 4, reflecting its relative size and market standing within the construction sector.

Comparative Performance Against Benchmarks

Deepak Builders has underperformed not only the Sensex but also the BSE500 index over multiple time frames. Its negative returns of 44.59% over the last year contrast sharply with the broader market’s positive gains. Over three years, the stock has delivered no growth, while the Sensex has appreciated by nearly 39%. This persistent underperformance highlights the challenges faced by the company in generating shareholder value.

Profitability has also declined, with profits falling by 6% over the past year, further compounding the stock’s difficulties. The combination of shrinking profits and declining stock price underscores the severity of the company’s current position within the construction sector.

Summary of Key Financial Indicators

To summarise, the company’s recent financial indicators include:

• PAT for latest six months: Rs.10.15 crores, down 67.61%
• Interest expense (quarterly): Rs.7.44 crores, up 32.62%
• Operating profit to interest ratio: 2.01 times (lowest recorded)
• Operating profit growth rate (annual): 51.41%
• ROCE: 14.9%
• Enterprise value to capital employed: 0.9

These figures illustrate a complex financial profile, with some positive long-term growth metrics overshadowed by recent declines in profitability and stock price.

Sector and Industry Context

Operating within the construction industry, Deepak Builders & Engineers India Ltd faces sectoral pressures that may influence its performance. The stock’s performance today was in line with its sector, despite the broader market’s sharper decline. This suggests that the company’s challenges are reflected in sector-wide trends, although its relative underperformance remains notable.

Conclusion

Deepak Builders & Engineers India Ltd’s fall to an all-time low of Rs.82.39 marks a significant event in its market history. The stock’s sustained underperformance relative to major indices and sector peers, combined with declining profitability and increased interest expenses, paints a detailed picture of the company’s current financial state. While some long-term growth indicators remain positive, the recent trend highlights the difficulties faced by the company in maintaining shareholder value and market confidence.

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