Stock Price Movement and Market Context
On 1 Dec 2025, National Peroxide’s stock recorded an intraday low of Rs.511, representing a decline of 2.48% on the day. This level also stands as the company’s all-time low, underscoring the extent of the price correction over the past year. Despite this, the stock showed signs of a minor recovery, gaining after two consecutive days of falls. However, it remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained downward pressure.
In contrast, the broader market displayed resilience. The Sensex opened higher at 86,065.92, gaining 359.25 points (0.42%) and was trading at 85,886.30 at the time of reporting, a 0.21% increase. The Sensex is also approaching its 52-week high of 86,055.86, supported by bullish moving averages with the 50-day DMA above the 200-day DMA. Small-cap stocks led the market rally, with the BSE Small Cap index advancing by 0.4%.
Comparative Performance Over One Year
National Peroxide’s share price performance over the last 12 months contrasts sharply with the broader market. The stock has recorded a negative return of 38.51%, while the Sensex has shown a positive return of 7.62% over the same period. The stock’s 52-week high was Rs.907.30, highlighting the magnitude of the decline from its peak.
Financial Metrics and Profitability Indicators
Several financial indicators illustrate the pressures on National Peroxide’s business fundamentals. Over the past five years, the company’s operating profits have shown a compound annual growth rate (CAGR) of -135.58%, signalling a contraction in core earnings. The average EBIT to interest ratio stands at a low 0.14, reflecting limited capacity to cover interest expenses from operating earnings.
Return on equity (ROE) averages at 1.90%, indicating modest profitability relative to shareholders’ funds. The latest six-month profit after tax (PAT) was Rs.1.28 crore, which has declined by 77.78% compared to the previous period. Additionally, non-operating income for the quarter accounted for 263.49% of profit before tax (PBT), suggesting that earnings are increasingly reliant on non-core activities rather than operational performance.
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Valuation and Risk Considerations
National Peroxide’s stock is considered to be trading at valuations that are risky relative to its historical averages. The company’s profits have fallen by 113% over the past year, further compounding concerns about its financial health. The stock’s performance has also lagged behind the BSE500 index over the last three years, one year, and three months, indicating persistent underperformance relative to a broad market benchmark.
Promoters remain the majority shareholders, maintaining control over the company’s strategic direction. However, the weak long-term growth in operating profits and limited ability to service debt highlight ongoing challenges in sustaining profitability and financial stability.
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Sector and Industry Context
Operating within the commodity chemicals sector, National Peroxide faces a competitive environment where pricing pressures and input cost volatility can impact margins. The sector itself has seen mixed performance, with some companies benefiting from cyclical upswings while others contend with subdued demand and rising expenses. National Peroxide’s current valuation and financial metrics suggest it is among the more challenged players in this space.
Summary of Current Situation
National Peroxide’s stock reaching a 52-week low of Rs.511 reflects a culmination of subdued financial results, weak profitability metrics, and valuation concerns. While the broader market and sector indices have shown resilience and gains, the company’s share price continues to reflect the impact of its financial performance and market positioning. The stock’s trading below all major moving averages further emphasises the prevailing downtrend.
Recent Trading Activity
Despite the new low, the stock’s performance on the day was in line with the commodity chemicals sector, which has experienced modest fluctuations. The slight gain following two days of decline may indicate short-term technical support, but the overall trend remains subdued given the company’s financial backdrop.
Conclusion
National Peroxide’s current stock price level at Rs.511, its lowest in over a year, highlights the challenges faced by the company in maintaining profitability and investor confidence. The financial data points to a company grappling with declining operating profits, limited debt servicing capacity, and low returns on equity. These factors have contributed to the stock’s underperformance relative to the broader market and sector peers.
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