Stock Price Movement and Market Context
On 8 December 2025, Deepak Builders & Engineers India’s share price recorded an intraday low of Rs.119, representing the lowest level in the past year and an all-time low for the company. The stock has been on a downward trajectory for two consecutive sessions, accumulating a loss of 5.88% over this period. Today’s trading saw the stock underperform its sector by 2.56%, reflecting broader challenges faced by the company.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex opened flat but later declined by 0.32% to 85,438.65 points. Notably, the Sensex remains close to its 52-week high of 86,159.02, trading above its 50-day and 200-day moving averages, indicating relative strength in the overall market compared to Deepak Builders & Engineers India’s performance.
Financial Performance Highlights
Deepak Builders & Engineers India’s recent quarterly results have shown a marked contraction in key financial metrics. Net sales for the quarter stood at Rs.45.05 crore, reflecting a decline of 69.1% compared to the average of the previous four quarters. Operating profit has contracted by 48.83%, contributing to a series of negative results over the last three quarters. The company’s profit after tax (PAT) for the quarter was Rs.4.98 crore, down 65.4% relative to the preceding four-quarter average.
Additionally, the operating profit to interest coverage ratio has reached a low of 2.27 times, indicating tighter margins for servicing debt obligations. These figures highlight the pressures on the company’s profitability and cash flow generation in the near term.
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Shareholder and Institutional Investor Trends
Institutional investors have reduced their holdings in Deepak Builders & Engineers India by 1.09% over the previous quarter, with their collective stake now at 2.78%. This reduction in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources. The decline in institutional interest coincides with the stock’s underperformance relative to broader market indices.
Comparative Performance and Sector Positioning
Over the past year, Deepak Builders & Engineers India’s stock has generated a return of -38.11%, significantly lagging behind the Sensex’s 4.60% gain during the same period. The stock’s 52-week high was Rs.213.60, underscoring the extent of the recent price decline. The company’s performance has also trailed the BSE500 index over the last three years, one year, and three months, indicating challenges in both the short and long term.
Valuation and Long-Term Growth Metrics
Despite recent setbacks, some long-term financial indicators present a more nuanced picture. The company’s operating profit has grown at an annual rate of 51.41% over a longer horizon, suggesting periods of robust expansion. Return on capital employed (ROCE) stands at 14.9%, which is considered attractive within the construction sector. 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, profit levels over the past year have declined by 6%, reflecting the recent pressures on earnings. This divergence between long-term growth rates and recent profit contraction highlights the mixed financial signals currently associated with Deepak Builders & Engineers India.
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Summary of Recent Developments
Deepak Builders & Engineers India’s stock reaching Rs.119 marks a significant milestone as the lowest price point in the last 52 weeks and all-time trading history. The decline reflects a combination of subdued quarterly sales, reduced profitability, and diminished institutional interest. While the broader market indices maintain relative strength, the company’s share price has not mirrored this trend, indicating sector-specific or company-specific pressures.
The company’s financial results over recent quarters have shown contraction in key metrics such as net sales and profit after tax, alongside a reduced operating profit to interest coverage ratio. These factors have contributed to the stock’s underperformance relative to the Sensex and sector benchmarks.
Long-term growth indicators such as operating profit growth rate and ROCE remain points of interest, though recent profit declines temper these positives. The stock’s valuation metrics suggest a measured market view of the company’s capital efficiency.
Overall, Deepak Builders & Engineers India’s current stock price reflects a period of adjustment amid challenging financial results and market dynamics within the construction sector.
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