Stock Performance and Market Context
On 8 December 2025, Deepak Builders & Engineers India’s stock price reached an intraday low of Rs.119, representing its lowest level in the past year and an all-time low for the company. This price point is considerably below its 52-week high of Rs.213.6, indicating a substantial contraction in market valuation. The stock has been on a downward trajectory for two consecutive days, with a cumulative return of -5.88% during this period. Today’s trading session saw the stock underperform its sector by 2.56%, closing with a day change of -3.85%.
In comparison, the broader market index, Sensex, opened flat but moved into negative territory, trading at 85,438.65 points, down 0.32% or 87.53 points. The Sensex remains close to its 52-week high of 86,159.02, just 0.84% away, and is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. This contrast highlights the relative weakness of Deepak Builders & Engineers India within an otherwise resilient market environment.
Technical Indicators and Moving Averages
Technical analysis reveals that Deepak Builders & Engineers India is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests sustained downward momentum and a lack of short-term support levels. The breach of these moving averages often signals caution among market participants and may reflect ongoing concerns about the company’s financial health and growth prospects.
Our latest monthly pick, this Large Cap from Aluminium & Aluminium Products, is outperforming the market! See the analysis that helped our Investment Committee select this winner.
- - Market-beating performance
- - Committee-backed winner
- - Aluminium & Aluminium Products standout
Financial Performance and Quarterly Results
Deepak Builders & Engineers India has reported a series of quarterly results that have shown contraction in key financial metrics. The company’s operating profit declined by 48.83% in the most recent quarter, contributing to what has been described as very negative results for September 2025. This marks the third consecutive quarter of negative financial outcomes.
Net sales for the quarter stood at Rs.45.05 crore, reflecting a fall of 69.1% compared to the average of the previous four quarters. Profit after tax (PAT) was recorded at Rs.4.98 crore, down by 65.4% relative to the same period. Additionally, the operating profit to interest ratio reached a low of 2.27 times, indicating tighter coverage of interest expenses by operating earnings.
Institutional Investor Activity
Institutional investors have reduced their holdings in Deepak Builders & Engineers India by 1.09% over the previous quarter, now collectively holding 2.78% of the company’s shares. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources and market insight.
Long-Term and Recent Performance Comparison
Over the past year, Deepak Builders & Engineers India’s stock has delivered a return of -38.11%, significantly underperforming the Sensex, which recorded a positive return of 4.60% during the same period. The stock has also lagged behind the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in generating shareholder value relative to broader market benchmarks.
Valuation and Profitability Metrics
Despite recent setbacks, the company’s long-term operating profit has grown at an annual rate of 51.41%, suggesting underlying growth potential in its core business activities. The return on capital employed (ROCE) stands at 14.9%, which is considered an attractive level of profitability. Furthermore, the enterprise value to capital employed ratio is 1.3, indicating a valuation that may be viewed as reasonable relative to the company’s capital base.
However, over the past year, profits have declined by 6%, aligning with the downward trend in the stock price and signalling pressures on the company’s earnings capacity.
Why settle for Deepak Builders & Engineers India ? SwitchER evaluates this Construction micro-cap against peers, other sectors, and market caps to find you superior investment opportunities!
- - Comprehensive evaluation done
- - Superior opportunities identified
- - Smart switching enabled
Summary of Key Concerns
The stock’s fall to Rs.119, its lowest level in a year, reflects a combination of subdued sales, shrinking profits, and reduced institutional interest. The company’s recent quarterly results have shown contraction in revenue and earnings, while the operating profit to interest coverage ratio indicates tighter financial flexibility. The stock’s position below all major moving averages further underscores the current downward momentum.
Market and Sector Comparison
While the broader market, as represented by the Sensex, remains near its 52-week high and supported by bullish technical indicators, Deepak Builders & Engineers India’s performance diverges notably. The construction sector itself has faced challenges, but the company’s relative underperformance highlights specific pressures affecting its business and valuation.
Conclusion
Deepak Builders & Engineers India’s stock reaching a 52-week low of Rs.119 marks a significant milestone in its recent market journey. The combination of declining sales, reduced profitability, and diminished institutional holdings has contributed to this outcome. The stock’s technical and fundamental indicators currently reflect a cautious market stance, with the company’s financial metrics signalling areas of concern amid a broader market that remains comparatively resilient.
Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →
