Stock Price Movement and Market Context
On 18 Dec 2025, Deepak Builders & Engineers India recorded its lowest price in the past year at Rs.116.1, representing a decline over the last three trading sessions with a cumulative return of -3.33%. The stock underperformed its sector by 0.72% today and has traded within a narrow range of Rs.1.15, indicating limited intraday volatility despite the downward trend.
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. This positioning suggests a sustained period of subdued price momentum relative to its historical trading levels.
In contrast, the broader market has shown resilience. The Sensex opened flat and is trading at 84,618.30, up 0.07%, and remains 1.82% below its 52-week high of 86,159.02. The index is supported by mega-cap stocks and is positioned above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish market environment.
Financial Performance and Profitability Trends
Deepak Builders & Engineers India’s financial results have reflected challenges over recent quarters. The company reported a fall in operating profit by 48.83% in the quarter ending September 2025. This marks the third consecutive quarter with negative results, highlighting a period of subdued earnings performance.
Net sales for the quarter stood at Rs.45.05 crores, the lowest recorded in recent periods. Profit after tax (PAT) was Rs.4.98 crores, showing a decline of 65.4% compared to the average of the previous four quarters. The operating profit to interest coverage ratio also reached a low of 2.27 times, indicating tighter margins for servicing debt obligations.
Over the past year, the stock has generated a return of -40.74%, significantly lagging the Sensex’s 5.53% gain over the same period. This underperformance extends to longer time frames, with the stock trailing the BSE500 index over the last three years, one year, and three months.
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Institutional Holding and Market Participation
Institutional investors have reduced their stake 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.
The stock’s market capitalisation grade is relatively low, reflecting its micro-cap status within the construction sector. Despite this, the company maintains a return on capital employed (ROCE) of 14.9%, which is considered attractive within the industry. The enterprise value to capital employed ratio stands at 1.2, suggesting a valuation that some may view as reasonable relative to capital utilisation.
Long-Term Growth and Profitability Metrics
While recent quarters have shown subdued earnings, Deepak Builders & Engineers India has demonstrated healthy long-term growth in operating profit, with an annual growth rate of 51.41%. However, profits over the past year have declined by 6%, indicating some pressure on the company’s bottom line despite the growth in operating metrics.
The stock’s 52-week high was Rs.213.6, nearly double the current price, underscoring the extent of the price correction over the past year. This decline has occurred amid a broader market that has generally trended upwards, highlighting sector-specific or company-specific factors influencing the stock’s performance.
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Summary of Recent Price and Performance Trends
Deepak Builders & Engineers India’s stock has been on a downward trajectory over the past year, with a total return of -40.74%. The recent three-day decline of 3.33% has culminated in the stock reaching its lowest price point in 52 weeks at Rs.116.1. This contrasts with the broader market’s positive momentum, where the Sensex remains close to its yearly peak and supported by strong mega-cap performance.
The company’s financial results over recent quarters have shown contraction in key profitability metrics, including operating profit and PAT, alongside a reduction in institutional investor holdings. Despite these challenges, the company’s long-term operating profit growth and valuation metrics such as ROCE and enterprise value to capital employed remain noteworthy within the construction sector context.
Investors and market participants will continue to monitor Deepak Builders & Engineers India’s financial disclosures and market movements as the stock navigates this low price territory amid a generally buoyant market environment.
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