National Peroxide Ltd Stock Hits All-Time Low Amid Steep Decline

Stock Performance and Market Context

On 2 Feb 2026, National Peroxide Ltd’s stock price declined by 6.08%, closing at Rs 383.1, just 2.27% above its 52-week low of Rs 381.15. This drop was notably sharper than the Sensex’s modest gain of 0.67% on the same day. The stock also underperformed its Commodity Chemicals sector by 1.38%, signalling relative weakness within its industry group.

Intraday, the stock touched a low of Rs 383.1, down 4.31% from the previous close, and is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the prevailing bearish sentiment among market participants.

Over multiple time horizons, National Peroxide Ltd has exhibited substantial negative returns. The one-day performance of -6.08% contrasts sharply with the Sensex’s positive movement. Over one week, the stock declined by 9.30%, while the Sensex fell marginally by 0.34%. The one-month performance shows a steep 19.98% drop against the Sensex’s 5.25% decline. The three-month return is even more pronounced, with a 37.09% loss compared to the Sensex’s 3.19% fall.

Longer-term figures reveal a stark underperformance: the stock has lost 48.49% over the past year while the Sensex gained 4.85%. Year-to-date, the stock is down 19.66%, significantly lagging the Sensex’s 4.65% decline. Over three and five years, National Peroxide Ltd’s stock has remained flat, generating no returns, whereas the Sensex has appreciated by 35.59% and 63.18% respectively. The ten-year comparison is even more telling, with the Sensex up 231.15% while the stock has not recorded any gains.

Financial Metrics and Fundamental Assessment

National Peroxide Ltd’s financial health has been under pressure, as reflected in its MarketsMOJO Mojo Score of 12.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 7 May 2025. The company’s market capitalisation grade stands at 4, indicating a relatively small market cap within its sector.

The company’s operating profits have declined at a compounded annual growth rate (CAGR) of -135.58% over the last five years, signalling a significant erosion in core earnings capacity. This deterioration is further evidenced by the company’s weak ability to service debt, with an average EBIT to interest ratio of just 0.14, highlighting limited earnings before interest and tax relative to interest expenses.

Return on equity (ROE) has averaged a modest 1.90%, indicating low profitability generated per unit of shareholders’ funds. The latest six-month profit after tax (PAT) stood at Rs 1.28 crore, reflecting a contraction of 77.78% compared to the previous period. Additionally, non-operating income for the quarter accounted for 263.49% of profit before tax (PBT), suggesting that a significant portion of earnings is derived from sources outside the company’s primary business activities.

Risk Profile and Valuation Considerations

The stock’s valuation appears risky relative to its historical averages. Over the past year, while the stock has generated a negative return of 48.49%, its profits have declined by 113%, underscoring the disconnect between earnings performance and market price. This negative trajectory has persisted over both the short and long term, with the stock underperforming the BSE500 index across three months, one year, and three years.

Promoters remain the majority shareholders, maintaining control over the company’s strategic direction. Despite this, the company’s financial metrics and market performance indicate ongoing challenges in sustaining profitability and shareholder value.

Summary of Current Situation

National Peroxide Ltd’s stock has reached an unprecedented low, reflecting a combination of weak financial performance, subdued profitability, and sustained market underperformance. The company’s inability to generate consistent operating profits and the reliance on non-operating income have contributed to its diminished valuation. The stock’s technical indicators, including trading below all major moving averages, reinforce the prevailing negative momentum.

While the promoters retain majority ownership, the company’s financial metrics suggest that it faces significant hurdles in reversing its current trend. The stock’s performance relative to the Sensex and its sector peers highlights the severity of its decline over multiple time frames.

Investors and market observers will note the comprehensive downgrade in the company’s Mojo Grade to Strong Sell, reflecting the deteriorated fundamentals and heightened risk profile. The stock’s trajectory over the past decade, with no appreciable gains compared to the robust growth of the Sensex, further contextualises the challenges faced by National Peroxide Ltd.

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