National Peroxide Ltd Falls to 52-Week Low of Rs.441 Amidst Weak Financial Metrics

Stock Price Movement and Market Context

On 6 Jan 2026, National Peroxide Ltd’s share price fell by 1.53% during the trading session, underperforming its Commodity Chemicals sector by 0.43%. This decline extended a losing streak over the past two days, during which the stock has depreciated by 5.94%. The current price of Rs.441 represents a sharp drop from its 52-week high of Rs.835, reflecting a 47.2% decrease over the period.

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex opened 108.48 points lower but remains near its 52-week high of 86,159.02, currently trading at 85,141.29, just 1.2% shy of its peak. The Sensex’s 50-day moving average remains above its 200-day average, indicating a generally bullish market environment that National Peroxide Ltd has not mirrored.

Financial Performance and Fundamental Concerns

National Peroxide Ltd’s financial metrics reveal underlying challenges that have contributed to the stock’s decline. Over the last five years, the company has experienced a compounded annual growth rate (CAGR) of -135.58% in operating profits, indicating a significant deterioration in core earnings capacity. This weak long-term fundamental strength is reflected in the company’s current Mojo Score of 12.0 and a Mojo Grade of Strong Sell, an upgrade from a Sell rating issued on 7 May 2025.

The company’s ability to service its debt remains constrained, with an average EBIT to interest coverage ratio of just 0.14, suggesting limited earnings relative to interest obligations. Return on equity (ROE) has averaged a modest 1.90%, signalling low profitability generated from shareholders’ funds.

Recent results for the six months ended September 2025 show a subdued performance, with profit after tax (PAT) at Rs.1.28 crore, representing a decline of 77.78%. Notably, non-operating income accounted for 263.49% of profit before tax (PBT) in the quarter, highlighting reliance on income sources outside core operations.

Valuation and Risk Profile

The stock’s valuation metrics indicate elevated risk relative to its historical averages. Over the past year, National Peroxide Ltd’s share price has declined by 45.63%, while profits have contracted by 113%, underscoring the disconnect between market performance and earnings deterioration. This negative trajectory has resulted in the stock underperforming the BSE500 index across multiple time frames, including the last three years, one year, and three months.

Market capitalisation grading stands at 4, reflecting a relatively modest size within its sector. The company’s promoter group remains the majority shareholder, maintaining control over strategic decisions.

Sector and Benchmark Comparison

Within the Commodity Chemicals sector, National Peroxide Ltd’s performance contrasts sharply with broader market trends. While the Sensex has delivered a positive return of 9.21% over the past year, the company’s stock has declined by 45.61%, highlighting significant underperformance. The sector itself has shown resilience, with many peers maintaining or improving valuations amid a generally positive market backdrop.

Summary of Key Metrics

To encapsulate, National Peroxide Ltd’s current stock price of Rs.441 represents a new 52-week low and all-time low, reflecting a sustained downtrend. The stock’s performance over the last year has been markedly weaker than the Sensex and its sector peers. Financial indicators such as operating profit CAGR, EBIT to interest ratio, and return on equity point to subdued profitability and financial stress. The company’s recent earnings have declined sharply, with a significant portion of profits derived from non-operating income.

Despite the broader market’s positive momentum, National Peroxide Ltd continues to face challenges that have weighed on its valuation and investor sentiment. The stock’s trading below all major moving averages further emphasises the prevailing negative trend.

Market Outlook and Positioning

While the Sensex maintains a bullish stance with its 50-day moving average above the 200-day average, National Peroxide Ltd’s share price trajectory remains subdued. The company’s market capitalisation grade and Mojo Score of 12.0, with a Strong Sell rating, reflect the cautious stance adopted by market analytics platforms. The promoter group’s majority shareholding remains a constant, but the company’s financial and market performance metrics suggest ongoing pressures within the Commodity Chemicals sector segment it operates in.

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