National Oxygen Ltd Falls to 52-Week Low of Rs.71.8 Amidst Continued Weakness

Stock Price Movement and Market Context

On 29 Dec 2025, National Oxygen Ltd’s stock hit an intraday low of Rs.71.8, representing an 8.36% drop for the day and underperforming its sector by 2.19%. This decline pushed the stock to its lowest level in the past year, a stark contrast to its 52-week high of Rs.165. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

In comparison, the broader market index, Sensex, opened flat and is trading marginally down by 0.14% at 84,926.56 points, remaining close to its 52-week high of 86,159.02. The Sensex continues to trade above its 50-day and 200-day moving averages, indicating a generally bullish market environment contrasting with National Oxygen’s performance.

Financial Performance and Fundamental Weaknesses

National Oxygen Ltd’s financial metrics reveal persistent difficulties. The company has reported negative results for four consecutive quarters, with its Profit After Tax (PAT) for the latest nine months standing at a loss of Rs.5.54 crores, reflecting a decline of 29.91% year-on-year. Net sales for the most recent six-month period have also contracted sharply by 34.14%, amounting to Rs.13.95 crores.

Operating cash flow for the year is notably negative at Rs.-0.18 crores, underscoring cash generation issues. The company’s Earnings Before Interest and Tax (EBIT) to interest ratio averages 0.95, indicating a weak capacity to service debt obligations. Furthermore, the company’s book value is negative, which contributes to its classification as having weak long-term fundamental strength.

Long-Term Performance and Valuation Concerns

Over the past year, National Oxygen Ltd’s stock has delivered a negative return of 42.42%, significantly underperforming the Sensex, which has gained 7.93% over the same period. This underperformance extends over a longer horizon, with the stock consistently lagging behind the BSE500 index in each of the last three annual periods.

The company’s net sales have declined at an annual rate of 1.97% over the last five years, reflecting subdued growth prospects. Additionally, the stock is trading at valuations considered risky relative to its historical averages, compounded by a 67.5% fall in profits over the past year. The negative EBITDA further highlights the financial strain the company is experiencing.

Shareholding and Market Sentiment

Promoters remain the majority shareholders of National Oxygen Ltd, maintaining control over the company’s strategic direction. Despite this, the stock’s Mojo Score stands at 3.0 with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 11 Aug 2025. The Market Cap Grade is 4, reflecting the company’s micro-cap status and associated market risks.

Summary of Key Metrics

To summarise, National Oxygen Ltd’s current stock price of Rs.71.8 represents a 56.5% decline from its 52-week high of Rs.165. The company’s financial health is characterised by negative earnings, declining sales, and weak debt servicing ability. Its stock continues to trade below all major moving averages, signalling persistent bearish momentum. The broader market environment remains relatively positive, with the Sensex near its 52-week high and trading above key moving averages, highlighting the stock’s relative underperformance.

These factors collectively contribute to the stock’s current valuation and market standing within the Other Chemical products sector.

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