Recent Market Performance and Price Trends
Over the past year, National Peroxide Ltd’s stock has depreciated by 46.08%, a stark contrast to the Sensex’s 7.03% gain during the same period. The downward trajectory has accelerated in recent months, with a 30.23% decline over the last three months and a 13.70% drop in the past month alone. Year-to-date, the stock has fallen 11.97%, underperforming the Sensex’s 3.21% decline.
The stock has been on a losing streak for three consecutive days, shedding 5.3% in returns during this period. Today’s session saw a further 1.62% drop, underperforming the Sensex’s 0.91% fall. Despite this, National Peroxide marginally outperformed its sector by 0.92% today, though it remains well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.
Financial Health and Profitability Metrics
The company’s long-term financial fundamentals have deteriorated considerably. Operating profits have contracted at a compound annual growth rate (CAGR) of -135.58% over the last five years, reflecting sustained pressure on core earnings. This decline in profitability is further evidenced by the company’s average Return on Equity (ROE) of just 1.90%, indicating limited returns generated on shareholders’ funds.
National Peroxide’s ability to service its debt remains weak, with an average EBIT to interest coverage ratio of 0.14, suggesting that earnings before interest and taxes are insufficient to comfortably cover interest expenses. This ratio points to heightened financial risk and constrained operational flexibility.
Latest Earnings and Income Composition
The company reported flat results for the six months ending September 2025, with a Profit After Tax (PAT) of ₹1.28 crore, representing a decline of 77.78% compared to the previous period. Notably, non-operating income accounted for 263.49% of Profit Before Tax (PBT), indicating that a significant portion of earnings is derived from sources outside the company’s primary business activities.
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Valuation and Risk Assessment
The stock is currently trading at levels considered risky relative to its historical valuations. Over the past year, while the stock’s price has declined by 46.08%, profits have fallen by an even steeper 113%, underscoring the disconnect between market value and earnings performance. This disparity highlights the challenges faced by the company in maintaining sustainable profitability.
In comparison to broader market indices, National Peroxide has underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent underperformance in both the near and long term. The company’s market capitalisation grade stands at 4, indicating a relatively modest market size within its sector.
Shareholding and Sector Context
Promoters remain the majority shareholders of National Peroxide Ltd, maintaining significant control over the company’s strategic direction. The firm operates within the commodity chemicals industry, a sector that has experienced volatility amid fluctuating raw material costs and demand cycles.
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Mojo Score and Analyst Ratings
National Peroxide Ltd’s Mojo Score currently stands at 12.0, with a Mojo Grade of Strong Sell as of 7 May 2025, an upgrade from the previous Sell rating. This grading reflects the company’s deteriorated fundamentals and heightened risk profile. The Strong Sell rating is supported by weak long-term growth trends, low profitability, and limited debt servicing capacity.
The downgrade in performance metrics and the stock’s proximity to its 52-week low reinforce the cautious stance reflected in the Mojo Grade. The company’s financial indicators and market performance collectively signal a challenging environment for the stock.
Summary of Key Performance Indicators
To summarise, National Peroxide Ltd’s key performance indicators reveal a company facing significant headwinds:
- One-year stock return: -46.08% versus Sensex +7.03%
- Operating profit CAGR over five years: -135.58%
- Average EBIT to interest coverage ratio: 0.14
- Average Return on Equity: 1.90%
- Latest six-month PAT: ₹1.28 crore, down 77.78%
- Non-operating income as percentage of PBT: 263.49%
- Trading below all major moving averages
These figures collectively illustrate the depth of the company’s current difficulties and the extent of its stock price decline.
Broader Market Context
Within the commodity chemicals sector, National Peroxide Ltd’s performance contrasts with broader market trends, where many peers have maintained more stable earnings and valuations. The stock’s underperformance relative to the BSE500 and Sensex indices highlights the divergence between the company’s trajectory and that of the wider market.
Despite the sector’s inherent cyclicality, National Peroxide’s financial metrics and stock price movements suggest a more pronounced and sustained downturn compared to its industry counterparts.
Conclusion
National Peroxide Ltd’s stock reaching an all-time low marks a significant milestone in its recent market journey. The combination of declining profitability, weak debt coverage, and underwhelming returns has contributed to this outcome. The company’s financial data and market performance provide a comprehensive picture of the challenges it currently faces within the commodity chemicals sector.
Investors and market participants will continue to monitor the stock’s movements and financial disclosures closely as the company navigates this difficult phase.
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