National Peroxide Ltd Falls 6.29% Amidst Prolonged Downtrend and Weak Financials

5 January 2026: Sharp Decline to 52-Week and All-Time Low

National Peroxide Ltd’s stock opened the week on a weak note, falling sharply to an intraday low of Rs.454.9, marking a new 52-week and all-time low. The stock closed at Rs.446.70, down 4.94% on the day, significantly underperforming the Sensex’s marginal 0.18% decline. This drop followed a reversal after four consecutive days of gains, signalling a shift in short-term momentum.

The decline was driven by weak financial metrics, including a steep contraction in operating profits and poor debt servicing capacity. The stock traded below all key moving averages, indicating sustained bearish sentiment. Over the past year, the stock has lost 45.09%, contrasting sharply with the Sensex’s 8.37% gain, highlighting the company’s relative underperformance.

6 January 2026: Continued Downtrend Amidst Financial Strain

The downward pressure intensified on 6 January as the stock hit a fresh all-time low of Rs.441, closing at Rs.429.70, down 3.81% for the day. This extended the two-day losing streak to a cumulative 5.94% decline. The Sensex also declined by 0.19%, but the stock’s fall was more pronounced, reflecting company-specific challenges.

Financial fundamentals remained weak, with a compound annual growth rate (CAGR) decline of 135.58% in operating profits over five years and an average EBIT to interest coverage ratio of just 0.14. Profit after tax (PAT) contracted by 77.78% in the latest six-month period, and non-operating income accounted for a disproportionate 263.49% of profit before tax, underscoring reliance on non-core earnings.

7 January 2026: New 52-Week and All-Time Low at Rs.420

On 7 January, National Peroxide Ltd’s stock reached a fresh 52-week and all-time low of Rs.420, closing marginally higher at Rs.436.90 with a 1.68% gain. Despite the slight recovery, the stock remained well below all major moving averages and underperformed the commodity chemicals sector by 1.79%. This marked the third consecutive day of decline, with the stock losing over 10% in value during this period.

The stock’s long-term underperformance continued, with a one-year return of -47.67% compared to the Sensex’s 8.52% gain. The company’s deteriorating fundamentals, including a 135.58% CAGR decline in operating profits and weak profitability metrics, contributed to the negative sentiment. The MarketsMOJO Mojo Grade was downgraded to Strong Sell, reflecting the challenging outlook.

8 January 2026: Minor Recovery Amid Broader Market Weakness

On 8 January, the stock showed signs of stabilisation, closing at Rs.437.60, up 0.16%. However, the broader market was weak, with the Sensex falling 1.41%. The modest gain did little to reverse the prevailing downtrend, as the stock remained below key moving averages and continued to reflect the company’s financial challenges.

9 January 2026: Week Ends with Slight Gain but Overall Losses Persist

The week concluded on 9 January with National Peroxide Ltd’s stock closing at Rs.440.35, up 0.63% on the day but down 6.29% for the week. The Sensex declined 0.89% on the day and 2.62% over the week, indicating the stock’s sharper underperformance. Despite minor daily gains late in the week, the overall trend remained negative, driven by weak earnings, poor debt coverage, and low return on equity.

Key Takeaways

Persistent Downtrend: National Peroxide Ltd’s stock has experienced a sustained decline, hitting multiple 52-week and all-time lows during the week, reflecting ongoing bearish momentum.

Financial Weakness: The company’s fundamentals remain under pressure, with a steep 135.58% CAGR decline in operating profits over five years, weak EBIT to interest coverage ratio of 0.14, and a significant 77.78% contraction in PAT over the latest six months.

Valuation Concerns: The stock trades below all key moving averages and at valuations considered risky relative to historical averages, compounded by a 113% fall in profits over the past year.

Relative Underperformance: The stock’s 6.29% weekly loss far exceeded the Sensex’s 2.62% decline, underscoring company-specific challenges amid broader market weakness.

Market Sentiment: The downgrade to a Strong Sell rating by MarketsMOJO, with a low Mojo Score of 12.0, reflects the cautious market stance on the stock’s outlook.

Conclusion

National Peroxide Ltd’s performance during the week of 5 to 9 January 2026 highlights a company grappling with significant financial and market challenges. The stock’s repeated new lows, steep declines in profitability, and weak debt servicing capacity have culminated in a pronounced underperformance relative to the Sensex and sector peers. Despite minor intraday recoveries, the overall trend remains negative, with the MarketsMOJO Strong Sell rating underscoring the cautious outlook. Investors should note the persistent fundamental weaknesses and valuation risks that continue to weigh on the stock’s prospects in the near term.

Unlock special upgrade rates for a limited period. Start Saving Now →