National Peroxide Ltd Stock Falls to 52-Week Low of Rs.400

Stock Price Movement and Market Context

On 27 Jan 2026, National Peroxide Ltd recorded an intraday low of Rs.400, representing a 3.51% drop from its previous close. Despite this, the stock managed to touch an intraday high of Rs.430, up 3.73%, before settling near its low point. The day’s performance saw the stock outperform its sector by 1.03%, though it remains well below key moving averages, trading beneath its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This persistent downward trend underscores the stock’s current weakness.

In comparison, the Sensex opened lower at 81,436.79, down 100.91 points (-0.12%), and was trading marginally down at 81,453.95 (-0.1%) during the same session. The Sensex has experienced a three-week consecutive decline, losing 2.54% over this period, while indices such as NIFTY MEDIA and NIFTY REALTY also hit new 52-week lows today. Despite this broader market softness, National Peroxide’s 52-week low is notably more pronounced, reflecting company-specific factors.

Long-Term Price Performance

Over the past year, National Peroxide Ltd’s stock has declined by 39.57%, a stark contrast to the Sensex’s positive 8.08% return over the same period. The stock’s 52-week high was Rs.770, indicating a substantial erosion of value. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the last three years, one year, and three months, signalling sustained challenges in maintaining investor confidence and market valuation.

Financial Performance and Profitability Concerns

National Peroxide Ltd’s financial metrics reveal significant weaknesses that have contributed to the stock’s decline. The company has experienced a negative compound annual growth rate (CAGR) of -135.58% in operating profits over the last five years, indicating a steep deterioration in core earnings capacity. This decline in operating profitability is a critical factor behind the stock’s poor performance.

The company’s ability to service its debt is also under pressure, with an average EBIT to interest ratio of just 0.14. This low coverage ratio suggests that earnings before interest and tax are insufficient to comfortably meet interest obligations, raising concerns about financial stability and credit risk.

Return on equity (ROE) has averaged a modest 1.90%, signalling limited profitability generated per unit of shareholders’ funds. Such a low ROE is indicative of subdued operational efficiency and challenges in generating value for equity investors.

Recent Earnings and Income Composition

The company’s latest six-month profit after tax (PAT) stood at Rs.1.28 crore, reflecting a decline of 77.78% compared to the previous period. This sharp contraction in net earnings further highlights the difficulties faced in maintaining profitability.

Notably, non-operating income accounted for 263.49% of profit before tax (PBT) in the most recent quarter, indicating that a significant portion of earnings is derived from sources outside the company’s core operations. This reliance on non-operating income may mask underlying weaknesses in operational performance.

Valuation and Risk Profile

The stock is currently trading at valuations that are considered risky relative to its historical averages. Over the past year, profits have fallen by 113%, while the stock price has declined by 39.57%, underscoring a disconnect between earnings deterioration and market pricing. This disparity suggests heightened uncertainty and risk perception among market participants.

In addition to underperforming the broader market indices, National Peroxide Ltd’s stock has lagged behind its sector peers and the BSE500 index across multiple time frames, including the last three years, one year, and three months. This consistent underperformance reflects structural challenges within the company’s business model and financial health.

Shareholding and Market Capitalisation

The majority shareholding in National Peroxide Ltd remains with the promoters, indicating concentrated ownership. The company’s market capitalisation grade is rated at 4, reflecting its size and liquidity characteristics within the commodity chemicals sector.

National Peroxide Ltd’s Mojo Score currently stands at 12.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 7 May 2025. This grading reflects the company’s deteriorated fundamentals and weak outlook based on comprehensive financial and market analysis.

Summary of Key Metrics

To summarise, National Peroxide Ltd’s stock has reached a new low of Rs.400, reflecting a year-long decline of 39.57% against a positive Sensex return of 8.08%. The company’s operating profits have contracted sharply over five years, with a negative CAGR of -135.58%. Its EBIT to interest coverage ratio of 0.14 and average ROE of 1.90% highlight ongoing profitability and financial serviceability concerns. Recent earnings have declined significantly, with PAT falling by 77.78% in the last six months and a heavy reliance on non-operating income.

Trading below all major moving averages and rated as a Strong Sell by MarketsMOJO, National Peroxide Ltd’s stock reflects the cumulative impact of these financial and market challenges. The company’s promoter ownership remains dominant, while its market capitalisation grade stands at 4 within the commodity chemicals sector.

These factors collectively explain the stock’s decline to its 52-week low and its current valuation status in the market.

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