1. At a Glance
Ladies and gentlemen, welcome to the bureaucratic construction circus where the walls are made of concrete and the profits of tender paper. Deepak Builders & Engineers India Ltd (DBEIL) — a ₹619 crore smallcap warrior from Punjab — has been busy stacking contracts like a mason on Red Bull. The company, listed in October 2024 after raising ₹260 crore through an IPO, now trades around ₹133, with a P/E of 13.1 — cheaper than your contractor’s excuses but solidly earning a 25.3% ROCE and 19.8% ROE.
In the last quarter (Sep 2025), sales stood at ₹45.05 crore with a net profit of ₹4.98 crore, down 63% and 67% QoQ respectively. Painful? Yes. But hey, it’s the construction business — where revenues flow slower than government approvals. Over FY25, DBEIL clocked ₹579 crore in revenue and ₹57 crore PAT, operating with an 18% margin. With a debt-to-equity ratio of 0.35 and a 0.75% dividend yield, it still keeps the books tidy while holding ₹1,380 crore worth of ongoing contracts across hospitals, bridges, and railway stations.
The company’s order book is split across railway projects (66%), industrial buildings (25%), and hospitals (4%). The Unity Mall contract worth ₹120.85 crore from HSIIDC in June 2025 shows DBEIL isn’t done adding trophies to its cabinet yet.
2. Introduction – From Blueprints to Bureaucrats
If India had a reality show for government contractors, Deepak Builders would be the undisputed finalist — quietly building half of North India while fighting paperwork thicker than cement slabs. Incorporated in 2017, this company entered the construction scene just in time to catch the infrastructure wave — not the one in Goa, the one fueled by tender documents and CPWD certifications.
DBEIL’s rise reads like an Indian engineer’s redemption story. From small administrative buildings in Punjab to constructing the grand Jang-E-Azadi Memorial worth ₹218 crore, and now bidding for Unity Malls, railway stations, and medical colleges — this firm has found its niche: executing turnkey projects that the government actually funds.
And it’s not just a brick-and-mortar tale. It’s a saga of EPC contracts (Engineering, Procurement, Construction) where the company takes full risk — because why not gamble when the client is the government? With a strong in-house design, procurement, and engineering team, DBEIL doesn’t rely on outsiders much — except, of course, for approvals and payments (which always take their own sweet bureaucratic time).
So, what’s the story now? After its successful IPO and a pile of new projects, DBEIL is trying to scale faster, diversify into infrastructure, and reduce borrowing — all while keeping margins steady. But with quarterly sales dropping faster than public sector punctuality, can the company maintain momentum? Let’s find out.
3. Business Model – WTF Do They Even Do?
Think of Deepak Builders as the “civilized” version of your local thekedar — but with a CPWD Super Class certification and an audited balance sheet.
The company runs three main verticals:
A) Construction Projects:Administrative and institutional buildings, hospitals, stadiums, memorials — basically, anything the government wants built (and sometimes rebuilt). These are turnkey EPC contracts — fixed price, full responsibility, full headache.
B) Infrastructure Projects:DBEIL is slowly moving up the food chain with projects like flyovers, railway overbridges (ROB), underbridges (RUB), and station upgrades. The ₹472 crore Ludhiana Junction upgrade and ₹120 crore Unity Mall are examples of how infrastructure is now its new playground.
C) Sale of Products:Whatever steel and cement are left after all the construction chaos — DBEIL sells them. Waste not, profit more.
The core of their model lies in bidding and execution efficiency. Government tenders aren’t for the faint-hearted — they demand certifications, guarantees, and the patience of a monk. But DBEIL has the rare CPWD Class I (Super) license, which allows it to bid for big projects most rivals can’t touch.
And since it owns most of its machinery and employs in-house engineers, the company saves on subcontractor costs — the real silent killer in EPC margins.
4. Financials Overview –
The Cemented Truth
Let’s put the numbers on the table before we lay the foundation of analysis.
| Metric | Latest Qtr (Sep 2025) | Same Qtr Last Year | Previous Qtr (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹45.05 Cr | ₹121.82 Cr | ₹106.60 Cr | -63.0% | -57.7% |
| EBITDA | ₹12.74 Cr | ₹27.67 Cr | ₹26.31 Cr | -53.9% | -51.6% |
| PAT | ₹4.98 Cr | ₹15.08 Cr | ₹14.99 Cr | -67.0% | -66.8% |
| EPS (₹) | 1.07 | 4.20 | 3.22 | -74.5% | -66.8% |
Annualised EPS = ₹1.07 × 4 = ₹4.28 → P/E = 133 / 4.28 = ~31.
Yes, the quarter looks like it got hit by a bulldozer. Sales fell due to slower billing cycles, delayed project recognition, and probably the monsoon’s love affair with construction sites.
Still, the OPM stayed strong at 28.28%, showing cost discipline despite turbulence. For a company with ₹152 crore debt and ₹507 crore TTM revenue, a dip this size hurts — but it’s cyclical.
5. Valuation Discussion – Fair Value Range Only
We’ll use three methods:
a) P/E MethodIndustry average P/E = 19DBEIL current P/E = 13.1EPS (TTM) = ₹10.2→ Fair range = ₹10.2 × (15–20) = ₹153 – ₹204
b) EV/EBITDA MethodEV = ₹764 CrEBITDA (TTM) = ₹92 CrEV/EBITDA = 8.3×Industry average ≈ 10–12×→ Fair EV = 10 × ₹92 = ₹920 Cr → Equity value ≈ ₹920 – ₹152 (debt) = ₹768 Cr → Per share ≈ ₹165
c) DCF (Simplified)Assuming free cash flow normalizes to ₹50 Cr with 10% growth for 5 years, 12% discount rate → Fair equity value ≈ ₹700–₹750 Cr → ₹150–₹160/share.
Fair Value Range (Educational Only): ₹150 – ₹200/shareThis fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Where do we even start? DBEIL’s last six months were a full season ofIndian Infrastructure: The Soap Opera.
- Unity Mall, Karnal: ₹120.85 crore EPC contract from HSIIDC (Jun 2025). That’s like Punjab’s version of a shopping paradise with bureaucratic approval stamps.
- CFO Musical Chairs:Rishabh Gupta resigned in April 2025, and Parveen Kumari took charge by September — a 20+ year veteran with an
