National Peroxide Gains 6.00%: Key Financial Turnaround and Market Dynamics

2 February: Stock Hits 52-Week and All-Time Low Amid Weak Financials

National Peroxide Ltd’s shares plunged to a new 52-week low of Rs.376 on 2 February 2026, marking a significant downturn amid deteriorating financial metrics. The stock closed at Rs.389.55, down 2.69% on the day, underperforming the Sensex which fell 1.03%. Intraday, the price touched Rs.376, reflecting a 6.08% decline from the previous close and signalling sustained selling pressure.

The decline was driven by weak profitability and financial health concerns. The company’s operating profits have contracted at a steep compound annual growth rate (CAGR) of -135.58% over five years, while the average EBIT to interest coverage ratio remains critically low at 0.14, indicating difficulty in servicing debt. Return on equity (ROE) averaged a modest 1.90%, underscoring limited profitability.

Recent earnings also disappointed, with a six-month PAT of Rs.1.28 crore, down 77.78% year-on-year. Non-operating income accounted for an outsized 263.49% of profit before tax, suggesting reliance on non-core sources to bolster earnings. These factors contributed to a MarketsMOJO downgrade to a Strong Sell rating with a Mojo Score of 12.0.

3 February: Market Recovery Supports Stock Rebound

Following the sharp decline, National Peroxide Ltd’s stock rebounded on 3 February, gaining 1.50% to close at Rs.395.40. This recovery coincided with a strong Sensex rally, which surged 2.63% amid broader market optimism. The stock’s volume increased substantially to 4,431 shares, indicating renewed investor interest despite lingering concerns.

This bounce reflected a technical recovery from oversold levels, though the stock remained below all key moving averages. The broader commodity chemicals sector also showed mixed performance, with National Peroxide still lagging peers on fundamental grounds.

4 & 5 February: Steady Gains Amid Mixed Market Signals

On 4 February, National Peroxide Ltd continued its upward trajectory, closing at Rs.399.05, up 0.92%. The Sensex also advanced modestly by 0.37%. The stock’s volume rose to 5,136 shares, reflecting sustained buying interest. On 5 February, the stock gained 2.58% to Rs.409.35 despite the Sensex retreating 0.53%, indicating relative strength in the share price amid broader market weakness.

These gains were supported by improving operational metrics and anticipation of quarterly results, which investors hoped would confirm a turnaround. However, the stock remained well below its 52-week high of Rs.770, highlighting the distance yet to be covered to regain prior valuations.

6 February: Strong Quarterly Turnaround Spurs Rally

National Peroxide Ltd reported a robust quarterly performance for the period ended December 2025, marking a significant turnaround. The company posted its highest recent quarterly PBDIT of Rs.6.99 crore and an operating profit margin of 10.12%, signalling improved operational efficiency. Profit after tax rose to Rs.2.41 crore, with earnings per share (EPS) at Rs.3.18, both quarterly highs.

This positive financial trend was reflected in the stock’s 3.65% gain on 6 February, closing at Rs.424.30. The company’s financial trend score improved markedly from -2 three months prior to +18, indicating a shift from flat to positive momentum. Despite this, the stock remains rated Strong Sell by MarketsMOJO with a Mojo Score of 17.0, reflecting ongoing caution due to structural challenges and limited market capitalisation.

The commodity chemicals sector continues to face volatility from raw material price fluctuations and regulatory pressures, which may impact sustainability of the turnaround. Nonetheless, the quarterly results provide a foundation for potential recovery if operational gains persist.

Weekly Price Performance: National Peroxide Ltd vs Sensex

Key Takeaways

National Peroxide Ltd’s week was marked by a sharp recovery from historic lows, with a 6.00% gain outperforming the Sensex’s 1.51% rise. The stock’s initial weakness reflected deep-rooted financial challenges, including a five-year operating profit CAGR of -135.58%, poor debt servicing capacity, and a 77.78% decline in recent PAT.

The strong quarterly results reported on 6 February, featuring record PBDIT and PAT figures, signal a potential inflection point. The improved financial trend score and margin expansion suggest operational improvements that could support further gains.

However, the company remains rated Strong Sell by MarketsMOJO, reflecting ongoing concerns about structural issues, sector cyclicality, and limited market capitalisation. The stock’s valuation remains depressed relative to historical highs, and volatility is likely to persist given sector headwinds.

Investors should note the divergence between recent positive earnings momentum and the company’s longer-term underperformance, with a 40.56% decline over the past year contrasting with the Sensex’s 6.32% gain. Sustained operational discipline and market conditions will be critical to maintaining the recovery.

Conclusion

National Peroxide Ltd’s week encapsulated a dramatic turnaround from a 52-week and all-time low to a solid weekly gain of 6.00%, driven by a strong quarterly earnings report and improved financial trends. While this recovery offers a glimmer of hope, the company’s fundamental challenges and sector volatility temper optimism. The stock’s Strong Sell rating and modest market capitalisation underscore the risks that remain. Going forward, consistent operational performance and margin sustainability will be key to reversing the prolonged downtrend and restoring investor confidence.

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