National Peroxide Falls to 52-Week Low of Rs.505 Amidst Prolonged Downtrend

Stock Price Movement and Market Context

On 4 December 2025, National Peroxide's share price touched Rs.505, the lowest level recorded in the past year and also its all-time low. This price point reflects a continued downward trajectory, with the stock having declined for two consecutive sessions, registering a cumulative return of -0.29% over this period. The day’s trading saw the stock underperform its sector by 0.38%, indicating relative weakness compared to other commodity chemical companies.

Further technical indicators show that National Peroxide is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness in moving averages suggests sustained selling pressure and a lack of upward momentum in the stock price.

In contrast, the broader market has exhibited resilience. The Sensex, after a negative start, rebounded sharply by 480.11 points to close at 85,467.67, representing a 0.42% gain. The index remains close to its 52-week high of 86,159.02, trading above its 50-day and 200-day moving averages, supported by strong performances from mega-cap stocks. This divergence highlights the challenges faced by National Peroxide relative to the overall market environment.

Long-Term Price Performance

Over the past year, National Peroxide’s stock has declined by 41.14%, a stark contrast to the Sensex’s 5.57% gain during the same period. The stock’s 52-week high was Rs.907.30, indicating a substantial erosion in value from its peak. This long-term underperformance extends beyond the last year, with the stock also lagging behind the BSE500 index over three years and the recent three-month period.

Financial Performance and Profitability Metrics

National Peroxide’s financial indicators reveal challenges in sustaining profitability and growth. The company’s operating profits have shown a compound annual growth rate (CAGR) of -135.58% over the last five years, indicating a significant contraction in core earnings. This trend is further reflected in the latest six-month period, where the profit after tax (PAT) stood at Rs.1.28 crore, representing a decline of 77.78% compared to the previous corresponding period.

Non-operating income has played a notable role in the company’s profit before tax (PBT), accounting for 263.49% of PBT in the most recent quarter. This suggests that earnings are being supported more by non-core activities rather than operational performance.

The company’s ability to service its debt is limited, with an average EBIT to interest ratio of 0.14, signalling that earnings before interest and tax are insufficient to comfortably cover interest expenses. Additionally, the average return on equity (ROE) is 1.90%, indicating low profitability generated from shareholders’ funds.

Valuation and Risk Considerations

National Peroxide’s stock is trading at levels considered risky relative to its historical valuations. The past year’s return of -41.14% coincides with a 113% decline in profits, underscoring the financial strain on the company. This combination of weak earnings and declining stock price has contributed to the current low valuation.

The stock’s underperformance is evident not only in the short term but also over longer horizons, as it has lagged behind broader market indices such as the BSE500 across multiple time frames. This persistent underperformance highlights the challenges faced by the company in regaining investor confidence and market standing.

Shareholding and Sector Position

National Peroxide operates within the commodity chemicals industry, a sector that has seen mixed performance amid fluctuating demand and raw material costs. 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 mirrored the broader market’s positive momentum, as evidenced by its relative price weakness.

While the Sensex and mega-cap stocks have shown strength, National Peroxide’s position remains subdued, reflecting the company’s specific financial and operational circumstances.

Summary of Current Situation

National Peroxide’s stock reaching Rs.505 marks a significant milestone in its recent price journey, representing the lowest level in 52 weeks and an all-time low. The stock’s performance contrasts sharply with the broader market’s gains and the Sensex’s proximity to its own 52-week high. Financial metrics reveal ongoing pressures on profitability, with operating profits contracting sharply over the past five years and recent earnings showing notable declines.

Trading below all key moving averages and underperforming its sector, National Peroxide faces a challenging environment. The company’s limited ability to cover interest expenses and low return on equity further illustrate the financial constraints it is navigating.

These factors collectively contribute to the stock’s current valuation and market sentiment, as reflected in its 52-week low price.

Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →