Stock Performance Overview
On 12 Jan 2026, National Peroxide Ltd’s stock price fell by 4.62% in a single day, markedly underperforming the Sensex, which declined by 0.46% on the same day. This drop contributed to the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend.
Over the past week, the stock declined by 5.98%, compared to a 2.63% fall in the Sensex. The one-month performance was even more pronounced, with a 15.44% loss against the Sensex’s 2.43% decline. The three-month period saw a steep 29.36% drop, while the Sensex recorded a modest gain of 0.84%.
Year-on-year, National Peroxide Ltd’s stock has plummeted by 45.95%, in stark contrast to the Sensex’s 7.51% rise. Year-to-date performance also remains negative at -10.26%, compared to the Sensex’s -2.38%. Over longer horizons, the stock has failed to register any gains over three, five, and ten years, while the Sensex has delivered returns of 38.75%, 68.01%, and 237.06% respectively.
Financial Metrics and Fundamental Assessment
The company’s fundamental indicators paint a challenging picture. National Peroxide Ltd’s 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, reflecting limited market capitalisation strength.
Operating profits have deteriorated sharply, with a compound annual growth rate (CAGR) of -135.58% over the last five years. This decline in core profitability is a key factor behind the stock’s weak valuation and performance.
The company’s ability to service debt is notably constrained, with an average EBIT to Interest ratio of just 0.14, indicating earnings before interest and tax are insufficient to comfortably cover interest expenses. This ratio highlights financial strain and elevated risk in meeting debt obligations.
Return on Equity (ROE) averages a modest 1.90%, signalling low profitability generated per unit of shareholders’ funds. Such a figure is considerably below industry norms and suggests limited value creation for investors.
Recent Earnings and Profitability Trends
In the latest six-month period ending September 2025, the company reported a profit after tax (PAT) of ₹1.28 crore, representing a decline of 77.78% compared to the prior period. This contraction in net earnings further emphasises the ongoing difficulties faced by the business.
Non-operating income accounted for 263.49% of profit before tax (PBT) in the quarter, indicating that a significant portion of profits arose from sources outside the company’s core operations. This reliance on non-operating income may not be sustainable in the long term.
Valuation and Risk Considerations
National Peroxide Ltd’s stock is currently trading at levels considered risky relative to its historical valuations. The steep decline in profits by 113% over the past year, coupled with a 45.95% negative return on the stock, underscores the heightened risk profile.
The company’s performance has been below par in both the near and long term. It has underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in regaining investor confidence and market share.
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Shareholding and Market Context
The majority ownership of National Peroxide Ltd remains with promoters, indicating concentrated control. Despite this, the stock’s performance has not reflected stability or growth, as evidenced by the recent all-time low price.
In terms of sectoral comparison, the stock marginally outperformed its commodity chemicals sector by 0.77% on the day of the latest decline, but this is insufficient to offset the broader downtrend and negative momentum.
Summary of Key Performance Indicators
To summarise, National Peroxide Ltd’s stock has experienced a sustained decline across multiple time frames, with significant underperformance relative to benchmark indices and sector peers. The company’s financial metrics reveal weak profitability, poor debt servicing capacity, and a reliance on non-operating income to bolster earnings.
These factors collectively contribute to the stock’s current status at an all-time low, reflecting the severity of its market and financial position as of early 2026.
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Conclusion
National Peroxide Ltd’s stock reaching an all-time low is indicative of prolonged financial and market challenges. The company’s deteriorating profitability, weak returns, and unfavourable valuation metrics have culminated in this significant market event. The data reflects a difficult environment for the company within the commodity chemicals sector as of January 2026.
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