Stock Performance and Market Context
On 7 January 2026, National Peroxide Ltd’s share price reached an intraday low of Rs.420, representing a 2.26% decline on the day. This marks the lowest price level for the stock in the past year and its all-time trading history. Over the last three trading sessions, the stock has recorded a cumulative loss of 10.06%, signalling a persistent negative momentum. The stock’s day change was recorded at a modest 0.74%, yet it underperformed the Commodity Chemicals sector by 1.79% on the same day.
Technical indicators show that National Peroxide Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across short, medium, and long-term technical levels underscores the prevailing bearish sentiment among market participants.
In contrast, the broader market index, Sensex, opened lower at 84,620.40 points, down 442.94 points or 0.52%, but has since recovered slightly to trade at 84,861.11 points, a decline of 0.24%. The Sensex remains close to its 52-week high of 86,159.02, just 1.53% away, and is trading above its 50-day and 200-day moving averages, indicating a generally bullish market environment. This divergence highlights the relative underperformance of National Peroxide Ltd compared to the broader market.
Financial Performance and Fundamental Concerns
National Peroxide Ltd’s financial metrics reveal several areas of concern that have contributed to the stock’s decline. The company’s long-term operating profit growth has been negative, with a compound annual growth rate (CAGR) of -135.58% over the past five years. This steep contraction in operating profits signals challenges in sustaining profitability from core business activities.
The company’s ability to service its debt is notably weak, as reflected by an average EBIT to interest ratio of just 0.14. This low coverage ratio indicates that earnings before interest and tax are insufficient to comfortably meet interest obligations, raising questions about financial stability.
Return on equity (ROE) has also been subdued, averaging 1.90%, which points to limited profitability generated per unit of shareholders’ funds. This low ROE suggests that the company has struggled to deliver adequate returns to its equity investors over time.
Recent results for the six months ended September 2025 show a decline in profit after tax (PAT) to Rs.1.28 crore, representing a contraction of 77.78%. Additionally, non-operating income accounted for 263.49% of profit before tax (PBT), indicating that a significant portion of earnings is derived from sources outside the company’s core operations.
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Valuation and Risk Profile
The stock’s valuation metrics reflect its elevated risk profile. Over the past year, National Peroxide Ltd has generated a negative return of 47.67%, significantly underperforming the Sensex, which posted a positive return of 8.52% during the same period. The stock’s 52-week high was Rs.835, indicating a steep decline of almost 50% from its peak.
Profitability has deteriorated sharply, with profits falling by 113% over the last year. This decline in earnings, combined with the stock’s negative returns, has contributed to its classification as a “Strong Sell” with a Mojo Score of 12.0, downgraded from a previous “Sell” rating on 7 May 2025. The company’s market capitalisation grade stands at 4, reflecting its relatively small size and associated liquidity considerations.
In addition to short-term underperformance, the stock has lagged the BSE500 index over multiple time frames, including the last three years, one year, and three months. This consistent underperformance highlights challenges in both near-term and long-term value creation for shareholders.
Shareholding and Sector Position
National Peroxide Ltd operates within the Commodity Chemicals industry and sector. The majority shareholding is held by promoters, indicating concentrated ownership. Despite the sector’s overall dynamics, the company’s stock has not kept pace with broader market or sectoral gains, as evidenced by its relative underperformance.
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Summary of Key Metrics
To summarise, National Peroxide Ltd’s key financial and market indicators as of early January 2026 are as follows:
- New 52-week and all-time low price: Rs.420
- One-year stock return: -47.67%
- Sensex one-year return: +8.52%
- Operating profit CAGR (5 years): -135.58%
- EBIT to interest coverage ratio (average): 0.14
- Return on equity (average): 1.90%
- Profit after tax (latest six months): Rs.1.28 crore, down 77.78%
- Non-operating income as % of PBT (quarterly): 263.49%
- Mojo Score: 12.0 (Strong Sell), downgraded from Sell on 7 May 2025
- Market capitalisation grade: 4
These figures collectively illustrate the challenges faced by National Peroxide Ltd in maintaining profitability and market valuation amid a competitive and volatile commodity chemicals sector.
Market and Technical Overview
While the broader market, represented by the Sensex, remains in a bullish technical phase trading above its 50-day and 200-day moving averages, National Peroxide Ltd’s share price continues to trend downward, trading below all major moving averages. This technical divergence emphasises the stock’s relative weakness within the current market environment.
The stock’s recent three-day losing streak and sharp price declines have contributed to its current 52-week low, underscoring the prevailing cautious stance among market participants towards this micro-cap commodity chemicals company.
Conclusion
National Peroxide Ltd’s fall to Rs.420 marks a significant milestone in its recent price trajectory, reflecting a combination of subdued financial performance, weak profitability metrics, and technical underperformance. Despite a broadly positive market backdrop, the stock has struggled to maintain value, with key fundamental indicators signalling ongoing challenges. The company’s financial ratios and earnings trends highlight areas of concern that have weighed on investor sentiment and contributed to the stock’s current valuation levels.
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