Price Movement and Market Context
On the day of the new low, National Peroxide Ltd’s shares touched an intraday low of Rs.400, down 3.51% from the previous close, despite briefly reaching an intraday high of Rs.430, a 3.73% gain. The stock has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. Over the last two trading sessions, the stock has declined by 7.6%, underperforming its sector by 2.61% on the day.
Comparing its performance against the broader market, National Peroxide Ltd has lagged the Sensex considerably. While the Sensex posted a marginal gain of 0.01% on the day, the stock rose by 0.82%, yet this short-term uptick contrasts with its longer-term trends. Over one month, the stock has fallen 12.01%, compared to the Sensex’s decline of 4.11%. The three-month performance shows a sharper drop of 30.34%, while the Sensex declined by only 3.81% in the same period.
Longer-term figures are more stark. Over the past year, National Peroxide Ltd’s stock has lost 39.26%, whereas the Sensex gained 8.20%. Year-to-date, the stock is down 10.69%, compared to the Sensex’s 4.31% decline. Over three and five years, the stock has shown no appreciable gains, remaining flat, while the Sensex has delivered returns of 37.45% and 72.01% respectively. The ten-year comparison is even more pronounced, with the Sensex up 232.96% and National Peroxide Ltd showing no growth.
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Financial Performance and Fundamental Assessment
National Peroxide Ltd’s financial metrics reveal considerable strain. The company’s operating profits have contracted at a compounded annual growth rate (CAGR) of -135.58% over the last five years, indicating a sharp deterioration in core earnings capacity. This decline in operating profitability has contributed to the stock’s classification with a Mojo Score of 12.0 and a Mojo Grade of Strong Sell, upgraded from a Sell rating on 7 May 2025.
The company’s ability to service its debt is notably weak, with an average EBIT to interest coverage ratio of just 0.14. This low ratio suggests that earnings before interest and tax are insufficient to comfortably cover interest expenses, raising concerns about financial stability. Return on equity (ROE) has averaged a modest 1.90%, reflecting limited profitability generated from shareholders’ funds.
Recent results for the six months ending September 2025 show a subdued profit after tax (PAT) of Rs.1.28 crore, representing a decline of 77.78% compared to the prior period. Non-operating income accounted for 263.49% of profit before tax (PBT), highlighting reliance on income sources outside core operations to sustain profitability.
Stock Valuation and Risk Profile
The stock’s valuation metrics indicate elevated risk relative to its historical averages. Over the past year, while the stock has generated a negative return of 39.26%, its profits have fallen by 113%, underscoring the disconnect between market price and earnings performance. This disparity contributes to the stock’s classification as risky within its commodity chemicals sector.
In addition to underperforming the Sensex, National Peroxide Ltd has lagged the BSE500 index over the last three years, one year, and three months. This below-par performance across multiple time horizons reflects persistent challenges in maintaining competitive positioning and financial health.
Shareholding and Market Capitalisation
The company’s majority shareholding remains with promoters, maintaining concentrated ownership. The market capitalisation grade stands at 4, indicating a relatively modest market cap within its sector. This factor, combined with the stock’s recent price movements and fundamental scores, contributes to its current market standing.
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Summary of Key Metrics
To encapsulate, National Peroxide Ltd’s stock has reached a new low of Rs.400, reflecting a sustained decline over recent months and years. The company’s financial indicators reveal significant contraction in operating profits, weak interest coverage, and low returns on equity. The stock’s performance has been markedly below benchmark indices and sector peers, with a strong sell rating underscoring the current market view.
While the stock’s day-to-day price movements show occasional gains, the broader trend remains negative, with the share price trading below all major moving averages. The concentrated promoter ownership and modest market capitalisation grade further contextualise the stock’s position within the commodity chemicals sector.
Investors and market participants will note the comprehensive data signalling the stock’s current status at an all-time low, underscoring the challenges faced by National Peroxide Ltd in recent years.
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