Deepak Builders & Engineers India Limited (DBEIL) AI Stock Analysis

Deepak Builders & Engineers India Limited

(NSE:DBEIL)

Select Model

Rating:62Neutral

Price Target:INR 6.50▲(5.69% Upside)

Action:reiterated

Date:09/08/26

With a final score of 62 (Financials: 50%, Technicals: 30%, Valuation: 20%), IN:DBEIL is bolstered by an appealing valuation and a solid, low-leverage balance sheet. However, the score is significantly weighed down by persistent cash burn from core operations and longer-term technical downtrends, presenting substantial risks until the company can successfully bridge the gap between accounting profits and actual cash generation.

Positive Factors

Earnings RecoveryFY2026's sharp improvement in net income, net margin and ROE indicates the company restored bottom-line profitability after a near-break-even FY2025. If maintained, this recovery can strengthen retained earnings and improve the economics of future contract execution.

Negative Factors

Margin CompressionRevenue contraction alongside sharply lower gross and EBITDA margins points to weaker project economics, pricing, mix, or cost control. Sustained compression would reduce the earnings available from each contract and make future profitability more sensitive to execution conditions.

Deepak Builders & Engineers India Limited (DBEIL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.86B
Dividend Yield: 1.63%
Average Volume (3M): 40.93K
Price to Earnings (P/E): 10.4
Beta (1Y): 1.48
Revenue Growth: -7.84%
EPS Growth: -51.79%
Country: India
Employees: 496
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Deepak Builders & Engineers India Limited Business Overview & Revenue Model

Company Description

Deepak Builders & Engineers India Limited, headquartered in Ludhiana, India, operates as a comprehensive engineering and construction firm. Founded in 1990, the company specializes in a diverse range of building and infrastructure projects across the...

How the Company Makes Money

DBEIL primarily makes money by undertaking construction/engineering contracts and recognizing revenue as it delivers work under those contracts. Key revenue streams generally include (1) contract revenue for executing civil and infrastructure works (...

Deepak Builders & Engineers India Limited Financial Statement Overview

Summary

The company presents a mixed financial profile. While it boasts a strong balance sheet with a low debt-to-equity ratio of 0.40 and surging bottom-line net profits, it struggles with severe cash flow weaknesses, evidenced by continuous negative operating and free cash flows alongside contracting gross margins.

Income Statement

65Positive

Balance Sheet

80Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.83B	5.82B	5.54B	5.11B	4.33B	3.63B
Gross Profit	1.55B	1.56B	913.87M	1.57B	772.42M	642.55M
EBITDA	1.07B	1.11B	809.85M	1.11B	480.67M	401.20M
Net Income	575.27M	6.63M	396.52M	604.12M	213.95M	176.64M
Balance Sheet
Total Assets	0	8.32B	9.87B	5.59B	4.49B	3.22B
Cash, Cash Equivalents and Short-Term Investments	94.77M	94.77M	28.67M	873.00K	31.70M	2.38M
Total Debt	0	1.35B	1.78B	1.57B	965.72M	796.48M
Total Liabilities	-4.13B	4.19B	5.40B	3.99B	3.49B	2.37B
Stockholders Equity	4.13B	4.13B	4.47B	1.60B	1.01B	847.19M
Cash Flow
Free Cash Flow	-1.49B	-1.43B	-444.50M	-403.95M	-5.60M	-45.85M
Operating Cash Flow	-1.38B	-1.31B	-409.68M	-268.46M	128.82M	6.01M
Investing Cash Flow	-113.27M	-119.19M	-29.19M	-111.31M	-131.03M	-51.86M
Financing Cash Flow	1.57B	1.53B	372.77M	348.95M	31.53M	400.00K

Deepak Builders & Engineers India Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price6.15

Price Trends

50DMA6.56Negative

100DMA7.21Negative

200DMA7.68Negative

Market Momentum

MACD-0.13Negative

RSI43.08Neutral

STOCH66.06Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DBEIL, the sentiment is Negative. The current price of 6.15 is below the 20-day moving average (MA) of 6.30, below the 50-day MA of 6.56, and below the 200-day MA of 7.68, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 66.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DBEIL.

Deepak Builders & Engineers India Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:DBEIL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:DBEIL	62Neutral	INR 2.86B	10.39	―	1.63%	-7.84%	-51.79%
IN:NILAINFRA	56Neutral	INR 2.49B	9.97	―	―	2.06%	12.57%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ATALREAL	43Neutral	INR 1.69B	17.08	―	―	17.10%	60.38%
IN:RPPINFRA	42Neutral	INR 2.18B	51.67	―	1.14%	3.68%	-93.35%
IN:IL&FSENGG	41Neutral	INR 4.98B	46.98	―	―	-33.48%	―
IN:MBLINFRA	39Underperform	INR 3.04B	-19.97	―	―	55.85%	81.30%

* General Sector Average

Performance Comparison

IN:DBEIL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:DBEIL	Deepak Builders & Engineers India Limited	6.15	-8.53	-58.11%
IN:ATALREAL	Atal Realtech Limited	13.61	-10.98	-44.65%
IN:IL&FSENGG	IL&FS Engineering & Construction Co. Ltd.	38.00	10.00	35.71%
IN:MBLINFRA	MBL Infrastructure Limited	19.50	-22.49	-53.56%
IN:NILAINFRA	Nila Infrastructures Limited	6.31	-3.73	-37.15%
IN:RPPINFRA	RPP Infra Projects Ltd.	44.00	-75.30	-63.12%

Deepak Builders & Engineers India Limited Corporate Events

Deepak Builders & Engineers India Adds Veteran Civil Engineer as Independent Director

Oct 30, 2026

Deepak Builders & Engineers India Limited’s board has approved the appointment of civil engineer Charanjit Singh Bains as an additional independent director, bringing more than 37 years of experience in planning and executing large infrastr...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 08, 2026

Deepak Builders & Engineers India Limited AI Stock Analysis