Deepak Builders & Engineers India Falls to 52-Week Low of Rs.117.6

Stock Price Movement and Market Context

On 9 December 2025, Deepak Builders & Engineers India’s stock price recorded a fresh low of Rs.117.6, representing a notable drop from its 52-week high of Rs.213.6. Despite a slight gain of 0.67% on the day, the stock remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained downward momentum over multiple time frames.

In comparison, the Sensex opened lower at 84,742.87, down by 359.82 points or 0.42%, and was trading at 84,790.96 at the time of reporting, reflecting a marginal loss of 0.37%. The Sensex remains close to its 52-week high of 86,159.02, just 1.61% away, supported by bullish moving averages where the 50-day moving average is positioned above the 200-day moving average. Small-cap stocks led the market with the BSE Small Cap index gaining 0.38% on the day, contrasting with the performance of Deepak Builders & Engineers India.

Financial Performance and Recent Results

Deepak Builders & Engineers India has experienced a challenging financial year. The company’s net sales for the most recent quarter stood at Rs.45.05 crore, reflecting a decline of 69.1% compared to the average of the previous four quarters. Profit after tax (PAT) for the quarter was Rs.4.98 crore, down by 65.4% relative to the prior four-quarter average. Operating profit also showed a significant contraction, falling by 48.83% in the latest quarter.

The operating profit to interest ratio for the quarter was recorded at 2.27 times, the lowest level observed, signalling tighter coverage of interest expenses by operating earnings. These figures contribute to the company’s recent negative quarterly results, marking three consecutive quarters of subdued financial outcomes.

Shareholding and Institutional 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.

Long-Term and Short-Term Performance Comparison

Over the past year, Deepak Builders & Engineers India’s stock has generated a return of -35.76%, significantly underperforming the Sensex, which recorded a positive return of 4.03% during the same period. The stock has also lagged behind the BSE500 index across the last three years, one year, and three months, indicating persistent challenges in both near-term and long-term performance.

Valuation and Profitability Metrics

Despite recent setbacks, the company’s return on capital employed (ROCE) stands at 14.9%, a figure that suggests a relatively attractive valuation. The enterprise value to capital employed ratio is 1.2, indicating that the company’s valuation remains modest relative to its capital base. Over the past year, while the stock price has declined by over a third, profits have fallen by a smaller margin of 6%, highlighting a divergence between market valuation and earnings performance.

Sector and Industry Overview

Deepak Builders & Engineers India operates within the construction industry, a sector that has faced varied market conditions in recent months. While broader market indices such as the Sensex have maintained levels near their 52-week highs, the construction sector has experienced headwinds that have impacted stock valuations and financial results. The company’s recent performance contrasts with the small-cap segment’s gains, underscoring sector-specific pressures.

Summary of Key Price and Performance Indicators

The stock’s current price of Rs.117.6 represents a significant decline from its peak of Rs.213.6 within the last 52 weeks. The recent trading activity shows a slight recovery after two consecutive days of decline, yet the stock remains below all major moving averages, signalling continued downward pressure. The company’s market capitalisation grade is noted as 4, reflecting its relative size and market standing within the construction sector.

Conclusion

Deepak Builders & Engineers India’s stock reaching a 52-week low highlights the challenges faced by the company amid a difficult operating environment. The combination of declining sales, reduced profitability, and diminished institutional interest has contributed to the current valuation levels. While the broader market and small-cap indices have shown resilience, the company’s share price reflects ongoing adjustments in market assessment and investor sentiment.

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