Deepak Builders (DBEIL)

Score breakdown: P/E: 3/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding is high at 72.50%, aligning management with minority shareholders.
• ROE of 19.23% and ROCE of 25.28% show strong capital efficiency if sustainable.
• Sales growth of 27.45% with a moderate debt/equity of 0.35.
• P/E of 9.76 looks cheap on trailing earnings, and dividend yield of 1.31% offers modest cash return.

Concerns

• Profit growth has collapsed by -68.20%; latest quarterly net profit of ₹5 Cr on ₹166 Cr sales implies only ~3% net margin.
• Piotroski F-Score of 4/9 signals weak financial health; FairStock Score is N/A due insufficient data.
• 52-week range of ₹6.86 to ₹185.60 shows extreme volatility and speculative price action.
• PEG of 0.36 is misleading because earnings are falling, not growing.

AI Analysis

I put a company through a simple test: can I understand it, is it likely to earn more in ten years, and does the price give me a margin of safety? Deepak Builders is a civil construction company, and construction is a cyclical, low-margin business. The numbers deserve caution. On the positive side, ROE is 19.23% and ROCE is 25.28%, both respectable; debt/equity is only 0.35; and sales grew 27.45%. Promoters own 72.50%, so their interests are aligned with mine. But profit growth is -68.20%. In the latest quarter, on ₹166 Cr of sales, net profit was only ₹5 Cr, roughly a 3% net margin. The P/E of 9.76 looks cheap only if that profit is sustainable. I suspect the E is from a peak margin that has collapsed. The Piotroski score of 4 out of 9 confirms financial health is weak, not strong. The price range, from ₹6.86 to ₹185.60 in 52 weeks, tells me this stock has been ridden by speculators, not accumulated by patient owners. A P/B of 1.90 is not a deep Graham bargain. The so-called PEG of 0.36 is misleading when earnings are falling; it does not justify a buy on my basis. FairStock score is N/A due insufficient data. I need more evidence. I would wait for margin stabilization, a stronger balance-sheet signal, and an order book that makes profits visible before treating this as a value proposition. In civil construction, the lowest bidder usually wins; I want a company with something more.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer