Stock Price Movement and Market Context
On 20 Jan 2026, National Peroxide Ltd’s stock touched an intraday low of Rs.410, which also represents its all-time low price. This decline came despite the stock outperforming its sector by 1.54% on the day, closing with a day change of -2.04%. The stock has been on a downward trajectory for three consecutive sessions, losing approximately 5.01% over this period. 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 sustained bearish momentum.
The broader market environment has also been challenging. The Sensex opened flat but sharply declined by 1,082.48 points, or 1.35%, closing at 82,124.90. This marked the third consecutive weekly fall for the Sensex, which has lost 4.24% over the past three weeks. Despite this, the Sensex remains 4.91% below its 52-week high of 86,159.02, with its 50-day moving average still positioned above the 200-day moving average, indicating some underlying market resilience.
Financial Performance and Valuation Concerns
National Peroxide Ltd’s recent financial metrics highlight ongoing challenges. The company’s one-year stock performance shows a decline of 46.31%, starkly contrasting with the Sensex’s positive 6.55% return over the same period. The stock’s 52-week high was Rs.779.90, underscoring the extent of the recent price erosion.
Long-term fundamentals remain weak, with a compounded annual growth rate (CAGR) of operating profits at -135.58% over the last five years. The company’s ability to service debt is notably constrained, reflected in a poor average EBIT to interest ratio of 0.14. Profitability metrics also remain subdued, with an average return on equity (ROE) of just 1.90%, indicating limited efficiency in generating shareholder returns.
Recent results for the six months ending September 2025 showed a profit after tax (PAT) of Rs.1.28 crore, which represents a decline of 77.78%. Additionally, non-operating income accounted for 263.49% of profit before tax (PBT) in the quarter, suggesting reliance on income sources outside core operations.
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Valuation and Risk Profile
The stock’s valuation appears stretched relative to its historical averages, with risk factors elevated due to negative operating profit trends. Over the past year, profits have declined by 113%, compounding the pressure on the share price. The company’s performance has been below par not only in the near term but also over the longer horizon, underperforming the BSE500 index across three years, one year, and three months.
Shareholding and Sector Position
National Peroxide Ltd operates within the commodity chemicals sector, a segment that has faced its own set of challenges amid fluctuating raw material costs and demand cycles. The majority shareholding remains with promoters, maintaining concentrated ownership.
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Mojo Score and Analyst Ratings
According to MarketsMOJO’s latest assessment dated 7 May 2025, National Peroxide Ltd’s Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell. This represents a downgrade from the previous Sell rating, reflecting deteriorating fundamentals and heightened risk. The company’s market capitalisation grade is rated 4, indicating a relatively modest market size within its sector.
Summary of Key Metrics
To summarise, National Peroxide Ltd’s stock has reached a significant low point at Rs.410, reflecting a combination of weak financial performance, subdued profitability, and challenging market conditions. The stock’s decline contrasts with the broader market’s mixed performance and highlights sector-specific pressures within commodity chemicals.
While the stock has outperformed its sector on the day of the new low, the prevailing trend remains negative, with multiple moving averages signalling continued downward momentum. The company’s financial indicators, including operating profit growth, debt servicing capacity, and return on equity, remain areas of concern as per the latest data.
Investors and market participants will note the comprehensive downgrade in the company’s Mojo Grade and the sustained underperformance relative to benchmark indices over various time frames.
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