Recent Price Movements and Market Context
On the day of the new low, National Peroxide’s stock declined by 2.25%, underperforming the Sensex which fell by 0.71%. The stock also lagged behind its Commodity Chemicals sector, with a relative underperformance of 2.36% on the day. The intraday low of ₹412.1 represented a 5.44% drop from the previous close, and the stock has now recorded losses over two consecutive sessions, cumulatively falling 3.15% during this period.
Technical indicators further highlight the bearish momentum, with the share price trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward pressure.
Extended Underperformance Versus Benchmarks
National Peroxide’s recent performance starkly contrasts with broader market trends. Over the past one year, the stock has declined by 44.19%, while the Sensex has appreciated by 8.30%. The disparity extends to shorter and longer durations as well: a 27.72% drop over three months versus a 1.16% gain in the Sensex, and a 10.77% fall over one month compared to a 2.30% decline in the benchmark index.
Year-to-date, the stock has lost 8.97%, underperforming the Sensex’s 2.63% decline. Over three and five years, National Peroxide’s returns have remained flat at 0.00%, while the Sensex has surged by 36.35% and 67.98% respectively. The ten-year comparison is even more pronounced, with the Sensex up 238.97% and National Peroxide showing no growth.
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Financial and Operational Metrics Indicate Strain
National Peroxide’s financial indicators reveal considerable challenges. The company’s long-term fundamental strength is weak, reflected in a negative compound annual growth rate (CAGR) of -135.58% in operating profits over the last five years. This steep decline in core profitability underscores the difficulties faced in sustaining earnings growth.
Debt servicing capacity is also limited, with an average EBIT to interest ratio of just 0.14, indicating that earnings before interest and tax cover interest expenses by a narrow margin. This ratio suggests heightened financial risk and constrained flexibility in managing debt obligations.
Profitability metrics further highlight subdued returns, with an average return on equity (ROE) of 1.90%, signalling low efficiency in generating profits from shareholders’ funds.
Recent Earnings and Income Composition
The latest six-month period ending September 2025 saw a flat performance in net profit after tax (PAT), which stood at ₹1.28 crore, representing a decline of 77.78% compared to the prior period. This contraction in earnings is a key factor in the stock’s negative sentiment.
Additionally, non-operating income accounted for 263.49% of profit before tax (PBT) in the quarter, indicating that a significant portion of profits derived from sources outside core operations. This reliance on non-operating income may raise questions about the sustainability of earnings quality.
Valuation and Risk Profile
From a valuation standpoint, National Peroxide is trading at levels considered risky relative to its historical averages. The stock’s return of -44.19% over the past year coincides with a 113% decline in profits, underscoring the correlation between deteriorating financial performance and market valuation.
Its underperformance extends beyond the immediate term, with the stock lagging the BSE500 index over three months, one year, and three years, reflecting persistent challenges in regaining investor confidence and market traction.
Shareholding and Market Perception
The company’s majority shareholding remains with promoters, a factor that typically provides stability in ownership structure. However, this has not translated into improved market performance or valuation uplift in recent periods.
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Mojo Score and Ratings
National Peroxide’s current Mojo Score stands at 12.0, categorising it as a Strong Sell. This represents a downgrade from its previous Sell rating, which was revised on 7 May 2025. The Market Cap Grade is rated at 4, indicating a relatively modest market capitalisation within its sector.
The Strong Sell rating reflects the aggregation of weak financial metrics, poor profitability, and sustained share price declines, signalling caution in the stock’s near-term outlook.
Summary of Performance Trends
In summary, National Peroxide Ltd has experienced a marked decline in share price, culminating in a new all-time low of ₹412.1. The stock’s performance has been consistently below market and sector benchmarks across multiple time horizons, with fundamental indicators pointing to subdued profitability and financial stress. The company’s earnings have contracted sharply, and valuation metrics suggest elevated risk relative to historical norms.
While the promoter holding remains significant, the overall market perception and financial data portray a company facing considerable headwinds within the Commodity Chemicals sector.
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