Stock Performance and Market Context
On 5 January 2026, National Peroxide Ltd's share price touched an intraday low of Rs.454.9, representing a 3.19% decline for the day and a 2.54% drop compared to the previous close. This new low also marks the stock’s all-time lowest price level. The stock underperformed its sector by 3.81% on the same day, reversing gains after four consecutive days of upward movement. Notably, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downward trend.
In contrast, the broader market has shown resilience. The Sensex, after an initial negative opening, recovered to close at 85,823.25 points, up 0.07% on the day and just 0.39% shy of its 52-week high of 86,159.02. The Sensex is currently trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a bullish market environment. Small-cap stocks led the market rally with the BSE Small Cap index gaining 0.18% on the day. This divergence highlights the relative weakness of National Peroxide Ltd within the broader market context.
Financial Performance and Fundamental Concerns
National Peroxide Ltd’s financial metrics reveal several areas of concern that have contributed to the stock’s decline. Over the past year, the stock has delivered a negative return of 45.09%, starkly underperforming the Sensex’s positive 8.37% gain over the same period. The stock’s 52-week high was Rs.835, underscoring the magnitude of the recent fall.
The company’s long-term financial health is reflected in a weak compound annual growth rate (CAGR) of operating profits, which has deteriorated by 135.58% over the last five years. This negative trajectory in operating profitability is a critical factor weighing on investor confidence. Additionally, the company’s ability to service its debt remains limited, with an average EBIT to interest coverage ratio of just 0.14, indicating that earnings before interest and tax are insufficient to comfortably cover interest expenses.
Return on equity (ROE) has averaged a modest 1.90%, signalling low profitability relative to shareholders’ funds. This figure is considerably below industry norms and suggests limited value generation for equity investors. The latest six-month profit after tax (PAT) stood at Rs.1.28 crore, reflecting a sharp decline of 77.78% compared to previous periods. Furthermore, non-operating income accounted for 263.49% of profit before tax (PBT) in the most recent quarter, indicating that core business earnings are under pressure and that the company is relying heavily on non-operating sources to sustain profitability.
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Valuation and Risk Assessment
The stock’s valuation metrics further underline its challenging position. National Peroxide Ltd is currently graded as a Strong Sell with a Mojo Score of 12.0, a downgrade from its previous Sell rating on 7 May 2025. The market capitalisation grade stands at 4, reflecting limited market confidence. The stock’s risk profile is elevated, trading at valuations that are considered risky relative to its historical averages.
Profitability has been under pressure with operating profits declining by 113% over the past year, reinforcing the negative trend in earnings. The company’s performance has been below par not only in the near term but also over the longer horizon, underperforming the BSE500 index across the last three years, one year, and three months. This sustained underperformance has contributed to the stock’s downward momentum and its recent 52-week low.
Shareholding and Market Position
The majority shareholding in National Peroxide Ltd remains with the promoters, indicating concentrated ownership. Despite this, the stock’s performance has not reflected any stabilising influence from promoter activity. The Commodity Chemicals sector, in which the company operates, has seen mixed trends, but National Peroxide Ltd’s relative weakness stands out against the broader sector and market indices.
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Summary of Key Metrics
To summarise, National Peroxide Ltd’s stock has reached a new 52-week low of Rs.454.9, reflecting a decline of 45.09% over the past year. The company’s financial indicators reveal a negative CAGR in operating profits of 135.58% over five years, a weak EBIT to interest coverage ratio of 0.14, and a low average ROE of 1.90%. The latest six-month PAT has contracted by 77.78%, while non-operating income constitutes a significant portion of profit before tax. The stock’s Mojo Grade has been downgraded to Strong Sell, underscoring the challenges faced by the company in both operational and financial dimensions.
Meanwhile, the broader market environment remains positive, with the Sensex trading near its 52-week high and small caps leading gains. This contrast highlights the specific difficulties faced by National Peroxide Ltd within its sector and the wider market.
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