Stock Performance and Market Context
On the trading day, National Peroxide Ltd’s stock fell by 3.17%, underperforming the Sensex which declined marginally by 0.14%. The stock also lagged behind its Commodity Chemicals sector, underperforming by 3.11%. This drop followed a four-day streak of gains, signalling a reversal in short-term momentum. Intraday, the share price touched a low of Rs.456, setting a new 52-week and all-time low benchmark.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish trend. Over the past month, the stock has declined by 9.03%, while the Sensex remained nearly flat with a 0.08% decrease. The underperformance is more pronounced over longer periods: a 24.85% drop over three months versus a 5.46% gain in the Sensex, and a steep 45.44% decline over the past year compared to the Sensex’s 8.10% rise.
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Long-Term Performance and Valuation Concerns
National Peroxide Ltd’s long-term performance has been notably weak. Over the past three and five years, the stock has shown no appreciable gains, registering a 0.00% return, while the Sensex surged by 41.90% and 76.80% respectively. Over a decade, the Sensex’s growth of 234.79% starkly contrasts with the stagnation in National Peroxide’s share price.
The company’s valuation metrics reflect heightened risk. Its average historical valuations suggest the stock is trading at a risky level relative to its past norms. This is compounded by a negative trajectory in operating profits, which have declined at a compound annual growth rate (CAGR) of -135.58% over the last five years.
Financial Health and Profitability Metrics
National Peroxide Ltd’s financial indicators reveal challenges in profitability and debt servicing capacity. The company’s average Return on Equity (ROE) stands at a modest 1.90%, indicating limited profitability generated per unit of shareholders’ funds. Furthermore, the average EBIT to interest ratio is a low 0.14, signalling difficulties in comfortably covering interest expenses from operating earnings.
Recent financial results for the six months ending September 2025 show a subdued performance, with Profit After Tax (PAT) at Rs.1.28 crore, reflecting a decline of 77.78%. Non-operating income for the quarter accounted for 263.49% of Profit Before Tax (PBT), highlighting reliance on income sources outside core operations.
Comparative Performance and Market Position
The stock’s underperformance extends across multiple time frames when benchmarked against the BSE500 index. Over the last three months, one year, and three years, National Peroxide Ltd has lagged behind the broader market, underscoring persistent challenges in maintaining competitive performance within the Commodity Chemicals sector.
Promoters remain the majority shareholders, maintaining control over the company’s strategic direction.
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Mojo Score and Analyst Ratings
Reflecting the company’s current standing, National Peroxide Ltd holds a Mojo Score of 12.0, categorised as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 7 May 2025, signalling a deterioration in the company’s fundamental and market outlook. The Market Capitalisation Grade is rated at 4, indicating a relatively modest market size within its sector.
The downgrade in rating aligns with the company’s financial trends and stock price performance, reinforcing the cautious stance reflected in the Mojo Grade.
Summary of Key Metrics
To summarise, National Peroxide Ltd’s stock has reached an unprecedented low of Rs.456, driven by a combination of weak financial results, declining profitability, and sustained underperformance relative to market benchmarks. The company’s challenges are evident in its negative operating profit growth, low return on equity, and limited ability to service debt obligations. These factors have contributed to a significant loss in shareholder value over the past year and longer periods.
While the stock’s recent price action shows a break from a short-term upward trend, the broader context remains subdued, with the share price trading below all major moving averages and continuing to lag sector and market indices.
Investors and market participants will note the company’s current position as reflected in its Mojo Score and Strong Sell rating, underscoring the prevailing market sentiment and fundamental assessment.
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