National Peroxide Ltd Falls to 52-Week Low of Rs.381.15 Amidst Weak Financial Metrics

Stock Price Movement and Market Context

On 1 Feb 2026, National Peroxide Ltd’s share price declined by 0.07%, underperforming its sector by 0.58%. This marks the third consecutive day of losses, with the stock falling by 2.37% over this period. The current price of Rs.381.15 is substantially lower than its 52-week high of Rs.770, representing a decline of approximately 50.5% from that peak.

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. This contrasts with the broader market, where the Sensex opened 119.19 points higher and is currently trading at 82,547.84, up 0.34%. The Sensex remains 4.37% below its 52-week high of 86,159.02, supported by gains in mega-cap stocks. However, National Peroxide Ltd’s performance diverges markedly from this positive market backdrop.

Financial Performance and Profitability Concerns

National Peroxide Ltd’s financial metrics reveal significant challenges. Over the last five years, the company has experienced a compound annual growth rate (CAGR) decline of 135.58% in operating profits, indicating a sustained erosion of core earnings capacity. The latest six-month profit after tax (PAT) stands at Rs.1.28 crore, reflecting a contraction of 77.78% compared to the previous period.

Non-operating income has become a disproportionately large component of profitability, accounting for 263.49% of profit before tax (PBT) in the most recent quarter. This suggests that earnings are increasingly reliant on non-core activities rather than operational performance.

The company’s ability to service debt remains weak, 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) averages a modest 1.90%, highlighting limited profitability relative to shareholders’ funds.

Comparative Performance and Valuation

Over the past year, National Peroxide Ltd’s stock has delivered a negative return of 44.98%, significantly underperforming the Sensex, which posted a positive return of 7.52% over the same period. The stock has also lagged behind the broader BSE500 index across multiple time frames, including the last three years, one year, and three months.

Valuation metrics indicate that the stock is trading at levels considered risky relative to its historical averages. Profitability has deteriorated sharply, with profits falling by 113% over the past year, underscoring the challenges faced by the company in maintaining earnings stability.

Shareholding and Sectoral Position

National Peroxide Ltd operates within the commodity chemicals sector, a segment that has seen mixed performance in recent times. The company’s majority shareholding remains with promoters, who continue to hold a controlling stake. Despite sectoral pressures, the stock’s decline is more pronounced than many of its peers, reflecting company-specific issues.

Mojo Score and Analyst Ratings

National Peroxide Ltd currently holds a Mojo Score of 12.0, categorised as a Strong Sell. This rating was upgraded from Sell on 7 May 2025, reflecting a deterioration in the company’s fundamental and market metrics. The market capitalisation grade stands at 4, indicating a relatively small market cap within its sector.

The downgrade in rating aligns with the company’s weak long-term growth trajectory, poor debt servicing capacity, and subdued profitability ratios. These factors collectively contribute to the cautious stance reflected in the Mojo Grade.

Summary of Key Financial Indicators

To summarise, National Peroxide Ltd’s key financial indicators paint a challenging picture:

• Operating profits have declined at a CAGR of -135.58% over five years.
• EBIT to interest coverage ratio averages 0.14, indicating limited ability to meet interest obligations.
• Return on equity averages 1.90%, signalling low profitability per unit of shareholder funds.
• Latest six-month PAT contracted by 77.78% to Rs.1.28 crore.
• Non-operating income constitutes 263.49% of profit before tax, highlighting reliance on non-core earnings.
• Stock price has fallen 44.98% over the past year, underperforming the Sensex by over 50 percentage points.

Market Environment and Sectoral Trends

While the broader market, led by mega-cap stocks, has shown resilience with the Sensex gaining 0.34% today, National Peroxide Ltd’s share price movement remains subdued. The commodity chemicals sector has faced headwinds, but the company’s underperformance relative to peers suggests company-specific factors are driving the decline.

The stock’s position below all major moving averages further emphasises the prevailing negative momentum, with no immediate technical support levels evident in the near term.

Conclusion

National Peroxide Ltd’s fall to a new 52-week low of Rs.381.15 reflects a combination of weak financial performance, deteriorating profitability, and subdued market sentiment. Despite a positive broader market environment, the stock continues to face significant headwinds, as evidenced by its Strong Sell Mojo Grade and declining key financial metrics. The company’s challenges in generating sustainable operating profits and servicing debt obligations remain central to its current valuation and market position.

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