National Peroxide Falls to 52-Week Low of Rs.500 Amidst Prolonged Downtrend

Recent Price Movement and Market Context

On 5 December 2025, National Peroxide’s share price touched Rs.500, setting a fresh 52-week low. This price level contrasts sharply with its 52-week high of Rs.907.30, indicating a substantial reduction in market valuation over the past year. The stock underperformed its sector by 0.47% on the day, while the broader market, represented by the Sensex, showed resilience. The Sensex recovered from an initial negative opening to close at 85,572.74 points, up 0.36%, and remains within 0.69% of its own 52-week high of 86,159.02.

National Peroxide’s stock has declined consecutively for three sessions, reflecting a short-term negative momentum. It is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a persistent downtrend across multiple timeframes. This contrasts with the Sensex, which is trading above its 50-day and 200-day moving averages, supported by gains in mega-cap stocks.

Long-Term Performance and Valuation Trends

Over the last year, National Peroxide’s stock has recorded a return of -41.85%, a stark contrast to the Sensex’s 4.69% gain during the same period. This underperformance extends beyond the last 12 months, with the stock lagging behind the BSE500 index over the past three years, one year, and three months. The stock’s current valuation is considered risky relative to its historical averages, reflecting the challenges faced by the company in maintaining profitability and growth.

Financial Metrics Highlighting Challenges

National Peroxide’s financial indicators reveal subdued performance. The company’s operating profits have shown a compound annual growth rate (CAGR) of -135.58% over the past five years, indicating a contraction in core earnings. Additionally, the average EBIT to interest coverage ratio stands at a low 0.14, suggesting limited capacity to comfortably service debt obligations.

The return on equity (ROE) averaged 1.90%, signalling modest profitability relative to shareholders’ funds. In the latest six-month period ending September 2025, the company reported a profit after tax (PAT) of Rs.1.28 crore, reflecting a decline of 77.78% compared to the previous corresponding period. Notably, non-operating income accounted for 263.49% of profit before tax (PBT) in the quarter, indicating reliance on income sources outside core operations.

Stock Risk and Market Positioning

The stock’s risk profile is elevated due to negative operating profits and a downward trend in returns. Over the past year, profits have fallen by 113%, underscoring the financial pressures faced by the company. Despite these challenges, the majority shareholding remains with promoters, maintaining a stable ownership structure.

Sector and Market Environment

National Peroxide operates within the commodity chemicals industry, a sector that has experienced mixed performance amid broader market fluctuations. While the Sensex and mega-cap stocks have shown strength recently, National Peroxide’s stock has not mirrored this trend, reflecting company-specific factors rather than sector-wide movements.

Summary of Key Price and Performance Data

To summarise, National Peroxide’s stock price today reached Rs.500, marking a new 52-week and all-time low. The stock has declined by 3.73% over the last three trading sessions and trades below all major moving averages. Its one-year return stands at -41.85%, contrasting with the Sensex’s positive 4.69% return. The company’s financial metrics indicate subdued profitability and challenges in debt servicing, with operating profits contracting significantly over the past five years.

These factors collectively contribute to the stock’s current valuation and market position, highlighting the ongoing pressures faced by National Peroxide within the commodity chemicals sector.

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