Stock Price Movement and Market Context
On 30 Dec 2025, National Peroxide Ltd’s share price reached its lowest level in the past year, closing at Rs.462.05. This represents a sharp fall from its 52-week high of Rs.850, reflecting a decline of approximately 45.7% over the period. Despite the broader market showing resilience, with the Sensex trading at 84,537.24 and only 1.92% below its own 52-week high of 86,159.02, National Peroxide’s stock has underperformed considerably.
Today, the stock outperformed its sector by 2.8%, and after two consecutive days of decline, it showed a modest gain. However, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward pressure.
Long-Term Performance and Valuation Concerns
Over the last year, National Peroxide Ltd has delivered a negative return of -41.56%, starkly contrasting with the Sensex’s positive 8.04% gain. This underperformance extends beyond the short term, with the stock lagging behind the BSE500 index over the last three years, one year, and three months. The company’s valuation metrics have deteriorated, with the stock trading at levels considered risky relative to its historical averages.
Its market capitalisation grade stands at 4, indicating a relatively modest market cap compared to peers. The company’s Mojo Score has declined to 12.0, accompanied by a downgrade in Mojo Grade from Sell to Strong Sell as of 7 May 2025, reflecting a deteriorating outlook based on fundamental analysis.
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Financial Performance and Profitability Metrics
National Peroxide Ltd’s financial results have been subdued, with the latest six-month PAT reported at Rs.1.28 crore, reflecting a decline of 77.78%. The company’s operating profits have contracted sharply, with a compound annual growth rate (CAGR) of -135.58% over the past five years, indicating sustained pressure on core earnings.
Non-operating income has accounted for 263.49% of profit before tax (PBT) in the most recent quarter, suggesting that earnings are increasingly reliant on non-core activities rather than operational strength. This raises concerns about the sustainability of profitability.
The company’s ability to service debt remains weak, with an average EBIT to interest coverage ratio of just 0.14, signalling limited cushion to meet interest obligations. Return on equity (ROE) has averaged a modest 1.90%, underscoring low profitability relative to shareholders’ funds.
Risk Profile and Market Position
National Peroxide Ltd is classified as a Strong Sell based on its Mojo Grade, reflecting weak long-term fundamentals and deteriorating financial health. The stock’s risk profile is elevated due to negative operating profits and declining returns, which have fallen by 113% over the past year. This contrasts with the broader market and sector trends, where many peers have maintained more stable earnings trajectories.
The company’s promoter group remains the majority shareholder, maintaining control over strategic decisions. However, the current financial metrics and stock performance indicate challenges in delivering shareholder value in the near term.
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Sector and Market Environment
The commodity chemicals sector, in which National Peroxide Ltd operates, has experienced mixed performance in recent months. While the broader Sensex index has shown resilience, trading close to its 52-week high, National Peroxide’s stock has not mirrored this trend. The Sensex is currently trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating a cautiously optimistic market environment overall.
Within this context, National Peroxide’s stock remains under pressure, reflecting company-specific factors rather than sector-wide dynamics. The stock’s recent trend reversal after two days of decline suggests some short-term price stabilisation, but it remains well below key technical levels.
Summary of Key Metrics
To summarise, National Peroxide Ltd’s stock has declined to Rs.462.05, its lowest level in 52 weeks, driven by a combination of weak earnings growth, low profitability, and limited debt servicing capacity. The company’s financial indicators, including a -135.58% CAGR in operating profits over five years and an average EBIT to interest ratio of 0.14, highlight ongoing challenges. The stock’s Mojo Grade of Strong Sell and a Mojo Score of 12.0 further reflect the cautious stance on its outlook.
Despite outperforming its sector by 2.8% today and showing a modest gain after recent falls, the stock remains below all major moving averages, underscoring the prevailing downward momentum.
Conclusion
National Peroxide Ltd’s fall to a 52-week low is a reflection of its subdued financial performance and valuation concerns amid a broader market that has remained relatively stable. The company’s weak profitability metrics and reliance on non-operating income contribute to the cautious assessment of its stock. While the sector environment shows some positive signals, National Peroxide’s share price continues to face downward pressure, as evidenced by its recent trading patterns and fundamental indicators.
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