National Peroxide Ltd Stock Falls to 52-Week Low of Rs.419

Stock Price Movement and Market Context

On 12 Jan 2026, National Peroxide Ltd’s share price hit an intraday low of Rs.419, representing a 4.85% drop from previous levels and establishing a fresh 52-week and all-time low. This decline followed a three-day run of consecutive gains, signalling a reversal in short-term momentum. Despite the day’s negative movement, the stock marginally outperformed its sector by 0.74% on the day.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring a sustained downward trend. This technical positioning reflects persistent selling pressure and a lack of upward momentum in recent months.

In contrast, the broader market, represented by the Sensex, opened lower at 83,435.31 points with a minor loss of 0.17%, but has since stabilised near 83,577.97 points. The Sensex remains within 3.09% of its 52-week high of 86,159.02, indicating relative strength in the overall market compared to National Peroxide’s performance.

Financial Performance and Profitability Concerns

National Peroxide Ltd’s financial metrics reveal considerable challenges. The company’s operating profits have declined at a compounded annual growth rate (CAGR) of -135.58% over the past five years, signalling a prolonged erosion of core earnings capacity. This deterioration has contributed to the stock’s downgrade from a 'Sell' to a 'Strong Sell' rating on 7 May 2025, with a current Mojo Score of 12.0, reflecting weak fundamentals.

The firm’s ability to service debt remains constrained, as evidenced by a poor average EBIT to interest coverage ratio of 0.14, indicating that operating earnings are insufficient to comfortably cover interest expenses. This financial strain is further highlighted by the company’s average return on equity (ROE) of just 1.90%, which points to limited profitability generated from shareholders’ funds.

Recent results for the six months ending September 2025 show a subdued profit after tax (PAT) of Rs.1.28 crore, representing a decline of 77.78% compared to prior periods. Additionally, non-operating income accounted for 263.49% of profit before tax (PBT), suggesting that earnings are increasingly reliant on non-core activities rather than operational performance.

Comparative Performance and Valuation Risks

Over the last year, National Peroxide Ltd’s stock has declined by 44.27%, significantly underperforming the Sensex, which has gained 7.97% over the same period. The stock’s 52-week high was Rs.785, highlighting the extent of the recent price erosion. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index across one-year, three-year, and three-month timeframes.

The stock’s valuation appears risky relative to its historical averages, with profits falling by 113% over the past year. This negative trajectory in earnings and returns has contributed to the current 'Strong Sell' Mojo Grade, reflecting market concerns about the company’s financial health and growth prospects.

Shareholding and Sector Position

National Peroxide Ltd operates within the commodity chemicals sector, a segment that has experienced mixed performance amid broader market fluctuations. The company’s promoter group remains the majority shareholder, maintaining significant control over strategic decisions and corporate governance.

Despite the sector’s overall dynamics, National Peroxide’s stock has not benefited from recent market rallies, as indicated by its persistent decline and technical weakness. The company’s market capitalisation grade stands at 4, further illustrating its modest standing within the sector and market capitalisation spectrum.

Summary of Key Metrics

To summarise, National Peroxide Ltd’s current stock price of Rs.419 represents a significant low point in its recent trading history. The company’s financial indicators, including a negative CAGR in operating profits, low EBIT to interest coverage, and minimal return on equity, highlight ongoing challenges in generating sustainable earnings. The stock’s underperformance relative to the Sensex and BSE500 indices further emphasises the difficulties faced by the company in maintaining investor confidence and market valuation.

While the broader market shows signs of resilience, National Peroxide Ltd remains under pressure, with technical indicators confirming a bearish trend. The company’s reliance on non-operating income to bolster profits and the substantial decline in PAT over recent periods underscore the need for cautious analysis of its financial position.

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