National Peroxide Stock Falls to 52-Week Low of Rs.470 Amidst Prolonged Downtrend

Stock Price Movement and Market Context

On 23 Dec 2025, National Peroxide’s stock recorded a decline of 1.14%, underperforming its Commodity Chemicals sector by 1.6%. The share price now trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex, despite a volatile session, remains close to its 52-week high, trading at 85,483.24 points, just 0.79% shy of its peak at 86,159.02.

The BSE Small Cap index showed modest gains of 0.24%, highlighting a divergence between small-cap stocks and National Peroxide’s performance. Over the past year, National Peroxide’s stock has declined by 43.05%, while the Sensex has recorded a positive return of 8.88%, underscoring the stock’s relative underperformance.

Financial Performance and Profitability Indicators

National Peroxide’s financial results over recent periods reveal subdued profitability and operational strain. The company’s operating profits have shown a compound annual growth rate (CAGR) of negative 135.58% over the last five years, indicating a contraction in core earnings capacity. This trend is further reflected in the company’s ability to service debt, with an average EBIT to interest ratio of just 0.14, suggesting limited earnings available to cover interest expenses.

Return on Equity (ROE) averages at 1.90%, signalling low profitability relative to shareholders’ funds. The latest six-month period ending September 2025 reported a profit after tax (PAT) of Rs.1.28 crore, which represents a decline of 77.78% compared to the previous corresponding period. Additionally, non-operating income for the quarter 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.

Valuation and Risk Considerations

The stock’s valuation metrics reflect heightened risk compared to its historical averages. Over the past year, National Peroxide’s profits have contracted by 113%, a factor contributing to the stock’s diminished market value. The 52-week high price of Rs.861 stands in stark contrast to the current level of Rs.470, illustrating the extent of the decline.

In addition to the recent price fall, the stock has underperformed the BSE500 index over multiple time frames, including the last three years, one year, and three months. This persistent underperformance highlights challenges in both the near and long term.

Shareholding and Industry Position

National Peroxide operates within the Commodity Chemicals sector, a segment characterised by cyclical demand and pricing pressures. The company’s majority shareholding rests with promoters, which may influence strategic decisions and capital allocation. Despite the sector’s overall dynamics, National Peroxide’s stock has not aligned with broader market trends, as evidenced by its relative weakness.

Summary of Key Metrics

To summarise, National Peroxide’s stock has reached a new low of Rs.470, reflecting a year-long decline of 43.05%. The company’s operating profit trajectory over five years shows a significant contraction, while its ability to cover interest expenses remains limited. Profitability ratios such as ROE remain subdued, and recent earnings have shown a marked reduction. The stock’s valuation and price performance lag behind both sector peers and broader market indices.

These factors collectively illustrate the challenges faced by National Peroxide in maintaining market confidence and financial stability amid a competitive and volatile commodity chemicals environment.

Only Rs. 14,999 - Get MojoOne + Stock of the Week for 1 Year PLUS 18 Months FREE! Claim Your Free Year →