Stock Performance and Market Context
On 29 Dec 2025, National Peroxide Ltd’s share price reached Rs.462.6, its lowest level in the past year and an all-time low. This represents a sharp fall from its 52-week high of Rs.850, reflecting a decline of approximately 45.6% from the peak. The stock underperformed its sector by 0.43% today and recorded a day change of -0.53%. Notably, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum.
In contrast, the broader market index, Sensex, opened flat but traded negatively by 0.19% at 84,879.01 points, remaining close to its 52-week high of 86,159.02, just 1.51% away. The Sensex continues to trade above its 50-day and 200-day moving averages, indicating a generally bullish market environment that National Peroxide Ltd has not been able to capitalise on.
Financial Performance and Profitability Concerns
National Peroxide Ltd’s financial metrics reveal significant challenges. The company’s long-term operating profit growth has deteriorated sharply, with a compounded annual growth rate (CAGR) of -135.58% over the last five years. This steep decline in operating profits has contributed to the stock’s weak performance and valuation pressures.
The company’s ability to service its debt remains constrained, as evidenced by a poor average EBIT to interest ratio of 0.14, indicating that earnings before interest and tax are insufficient to comfortably cover interest expenses. This ratio is a critical indicator of financial health, and such a low figure suggests elevated financial risk.
Return on equity (ROE) has also been subdued, averaging just 1.90%, which points to limited profitability generated from shareholders’ funds. This low ROE reflects the company’s struggle to generate adequate returns relative to the capital invested by its owners.
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Recent Earnings and Profitability Trends
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 contraction in profitability is a key factor behind the stock’s weak performance. Additionally, non-operating income for the quarter accounted for 263.49% of profit before tax (PBT), indicating that a significant portion of earnings is derived from sources outside the core business operations.
Over the past year, National Peroxide Ltd’s stock has generated a negative return of 42.15%, while its profits have fallen by 113%. This stark contrast highlights the company’s deteriorating earnings base and the resultant impact on investor sentiment.
Valuation and Risk Assessment
The stock is currently trading at valuations that are considered risky relative to its historical averages. Its performance has lagged behind the BSE500 index over the last three years, one year, and three months, underscoring a pattern of underperformance both in the near and long term.
National Peroxide Ltd’s Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell as of 7 May 2025, an upgrade from the previous Sell rating. The company’s market capitalisation grade is 4, reflecting its relatively modest size within the commodity chemicals sector.
Shareholding and Sector Position
The majority shareholding in National Peroxide Ltd is held by promoters, indicating concentrated ownership. The company operates within the commodity chemicals industry, a sector that has experienced mixed performance amid fluctuating raw material costs and demand cycles.
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Summary of Key Metrics
To summarise, National Peroxide Ltd’s stock has declined to Rs.462.6, its lowest level in 52 weeks, reflecting a 41.84% drop in share price over the past year. This contrasts sharply with the Sensex’s 7.86% gain over the same period. The company’s financial indicators, including a negative CAGR in operating profits, low EBIT to interest coverage, and subdued ROE, highlight ongoing challenges in profitability and financial stability.
While the broader market maintains a bullish stance, National Peroxide Ltd’s share price and fundamentals indicate a cautious outlook based on current data.
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