Stock Price Movement and Market Context
On 17 Dec 2025, Deepak Builders & Engineers India’s stock recorded an intraday low of ₹116.9, representing a 2.3% decline for the day and closing just 1.11% above its 52-week low of ₹116.3. The stock has been on a downward trajectory for two consecutive sessions, accumulating a 2.08% loss over this period. This performance contrasts with the broader construction sector, where the stock underperformed by 0.75% on the same day.
Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This technical positioning suggests that the stock has been unable to find short-term support levels, reflecting investor caution.
Meanwhile, the Nifty index closed at 25,818.55, down 0.16% for the day, and remains 1.96% below its 52-week high of 26,325.80. The index has experienced a three-week consecutive decline, losing 1.47% in this period. Notably, all market capitalisation segments have shown declines, with small caps dragging the market lower, as indicated by the Nifty Small Cap 100 index falling 0.73%.
Financial Performance Highlights
Deepak Builders & Engineers India’s recent quarterly results have shown considerable contraction in key financial metrics. Net sales for the quarter stood at ₹45.05 crores, reflecting a 69.1% reduction compared to the average of the previous four quarters. Correspondingly, the company’s profit after tax (PAT) for the quarter was ₹4.98 crores, down 65.4% relative to the prior four-quarter average.
The operating profit margin has also been under pressure, with a decline of 48.83% reported in the latest quarter. The operating profit to interest coverage ratio has reached a low of 2.27 times, indicating tighter margins for servicing debt obligations.
These results mark the third consecutive quarter of negative financial outcomes, underscoring a challenging period for the company’s earnings generation capabilities.
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Long-Term and Relative Performance
Over the past year, Deepak Builders & Engineers India has recorded a total return of -38.75%, a stark contrast to the Sensex’s 4.80% gain during the same period. This underperformance extends beyond the last year, with the stock lagging behind the broader BSE500 index over one, three-year, and three-month timeframes.
Institutional investor participation has also declined, with a reduction of 1.09% in their stake over the previous quarter. Currently, institutional investors hold 2.78% of the company’s shares. Given their analytical resources, this shift may reflect a reassessment of the company’s fundamentals.
Valuation and Profitability Metrics
Despite recent setbacks, some valuation metrics present a contrasting picture. The company’s return on capital employed (ROCE) stands at 14.9%, which is considered attractive within the construction sector. Additionally, the enterprise value to capital employed ratio is 1.2, suggesting a valuation that may be viewed as reasonable relative to the company’s capital base.
Operating profit has shown a compound annual growth rate of 51.41% over the longer term, indicating periods of healthy expansion. However, profits have declined by 6% over the past year, reflecting the recent financial pressures.
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Sectoral and Market Influences
The construction sector, in which Deepak Builders & Engineers India operates, has faced headwinds in recent months. The broader market’s small-cap segment has been a notable drag, with the Nifty Small Cap 100 index down 0.73%. This environment has contributed to the stock’s relative underperformance.
While the Nifty index maintains a bullish stance technically, trading above its 50-day moving average with the 50 DMA above the 200 DMA, the stock’s position below all major moving averages highlights its divergence from broader market trends.
Summary of Key Price Levels
The stock’s 52-week high is ₹214, indicating a substantial decline from its peak to the current 52-week low vicinity near ₹116.3. This price movement reflects the cumulative impact of recent quarterly results, market sentiment, and sectoral pressures.
On the day of analysis, the stock’s market capitalisation grade is noted as 4, with a day change of -1.71%, further illustrating the downward momentum.
Conclusion
Deepak Builders & Engineers India’s stock reaching its 52-week low is a significant development that encapsulates the challenges faced by the company in recent quarters. The combination of declining sales, reduced profitability, and diminished institutional participation has contributed to this price level. While valuation metrics such as ROCE and enterprise value to capital employed remain noteworthy, the recent financial results and market dynamics have exerted downward pressure on the stock.
Investors and market participants will continue to monitor the company’s performance and sectoral conditions as the stock navigates this critical price point.
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