Recent Price Movement and Market Context
On 7 January 2026, National Peroxide Ltd's share price touched an intraday low of Rs.420, representing a 2.26% decline on the day. This marks the lowest price level the stock has seen in the past year and indeed its entire trading history. The stock has underperformed its sector, falling 1.79% relative to the Commodity Chemicals sector on the same day. Over the last three consecutive trading days, the stock has delivered a cumulative negative return of 10.06%, reflecting persistent selling pressure.
Trading below all key moving averages – including the 5-day, 20-day, 50-day, 100-day, and 200-day averages – the stock's technical indicators signal a sustained bearish trend. This contrasts with the broader market, where the Sensex opened lower at 84,620.40 points, down 0.52%, but remains close to its 52-week high of 86,159.02, just 1.53% away. The Sensex continues to trade above its 50-day and 200-day moving averages, indicating a generally bullish market environment despite the minor correction.
Long-Term Performance and Valuation Concerns
National Peroxide Ltd's one-year performance starkly contrasts with the broader market. The stock has declined by 47.67% over the past year, while the Sensex has gained 8.52% during the same period. The 52-week high for the stock was Rs.835, underscoring the magnitude of the recent price erosion. This underperformance extends beyond the short term, with the stock lagging the BSE500 index over the last three years, one year, and three months.
The company’s valuation metrics and fundamental scores reflect ongoing challenges. The MarketsMOJO Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell as of 7 May 2025, downgraded from Sell. The Market Cap Grade is rated 4, indicating below-average market capitalisation quality. These assessments highlight concerns over the company’s financial health and growth prospects.
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Financial Performance and Profitability Metrics
National Peroxide Ltd has exhibited a weak financial profile over recent years. The company’s operating profits have contracted at a compounded annual growth rate (CAGR) of -135.58% over the last five years, signalling a significant erosion in core earnings capacity. The average EBIT to interest coverage ratio stands at a low 0.14, indicating limited ability to comfortably service debt obligations.
Return on Equity (ROE) has averaged just 1.90%, reflecting modest profitability relative to shareholders’ funds. The latest six-month period ending September 2025 saw a profit after tax (PAT) of Rs.1.28 crore, which represents a decline of 77.78% compared to the prior period. Additionally, non-operating income accounted for 263.49% of profit before tax (PBT), suggesting reliance on income sources outside the company’s primary business operations.
Risk Profile and Valuation Considerations
The stock’s risk profile remains elevated, trading at valuations that are considered risky relative to its historical averages. Over the past year, the company’s profits have fallen by 113%, while the stock price has declined by 47.77%. This divergence underscores the challenges faced in maintaining earnings stability and investor confidence.
Despite the broader market’s positive momentum, National Peroxide Ltd’s stock continues to reflect below-par performance both in the near term and over longer horizons. The company’s promoter group remains the majority shareholder, maintaining control over strategic decisions.
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Summary of Key Metrics
To summarise, National Peroxide Ltd’s stock price has declined to Rs.420, its lowest level in 52 weeks and all-time trading history. The stock has underperformed its sector and the broader market indices, with a one-year return of -47.67% compared to the Sensex’s 8.52% gain. The company’s financial indicators reveal weak profitability, poor debt servicing capacity, and a significant contraction in operating profits over the past five years.
Trading below all major moving averages, the stock’s technical and fundamental profiles remain subdued. The Mojo Grade of Strong Sell, assigned in May 2025, reflects the ongoing concerns regarding the company’s earnings trajectory and valuation risks.
Market Environment and Broader Context
While National Peroxide Ltd faces these challenges, the broader market environment remains relatively stable. The Sensex continues to trade near its 52-week high and maintains a bullish stance above key moving averages. This divergence highlights the stock’s specific difficulties within the Commodity Chemicals sector, which may be influenced by company-specific factors and sectoral dynamics.
Ownership and Shareholding
The promoter group holds the majority stake in National Peroxide Ltd, maintaining control over corporate governance and strategic direction. This concentrated ownership structure may influence the company’s decision-making processes and long-term planning.
Conclusion
National Peroxide Ltd’s fall to a 52-week low of Rs.420 marks a notable point in its recent trading history, reflecting a combination of weak financial performance, valuation pressures, and subdued market sentiment. The stock’s underperformance relative to the broader market and sector benchmarks underscores the challenges faced by the company in sustaining profitability and investor confidence.
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