National Peroxide Falls to 52-Week Low of Rs.511 Amidst Prolonged Downtrend

Stock Price Movement and Market Context

On 1 Dec 2025, National Peroxide's share price touched an intraday low of Rs.511, which also stands as its all-time low. The stock recorded a decline of 2.48% during the trading session, aligning with the sector’s overall performance for the day. Despite this, the stock showed signs of a short-term recovery by gaining after two consecutive days of falls. However, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained bearish trend.

In contrast, the broader market exhibited resilience. The Sensex opened higher at 86,065.92 points, gaining 359.25 points or 0.42%, and was trading near its 52-week high of 86,055.86 by midday. The Sensex has recorded a 1.57% gain over the past three weeks, supported by small-cap stocks leading the rally with the BSE Small Cap index rising by 0.4% today. This divergence highlights the relative underperformance of National Peroxide within the commodity chemicals sector and the wider market.

Long-Term Price Performance

Over the last twelve months, National Peroxide’s stock price has declined by 38.51%, a stark contrast to the Sensex’s 7.62% gain during the same period. The stock’s 52-week high was Rs.907.30, underscoring the extent of the price erosion. This downward trajectory has persisted despite the broader market’s positive momentum, reflecting company-specific challenges that have weighed on investor sentiment.

Financial Metrics and Profitability Concerns

National Peroxide’s financial indicators reveal pressures that have contributed to the stock’s subdued performance. The company’s operating profits have shown a compound annual growth rate (CAGR) of -135.58% over the past five years, signalling a contraction in core earnings capacity. 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 prior period.

Non-operating income has played a significant role in the company’s profitability, accounting for 263.49% of profit before tax (PBT) in the most recent quarter. This reliance on non-core income sources may indicate challenges in sustaining earnings from primary operations.

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

Valuation and Risk Profile

National Peroxide’s stock is trading at levels considered risky when compared to its historical valuations. The stock’s negative returns of 38.51% over the past year coincide with a 113% decline in profits, underscoring the challenges faced by the company. Furthermore, the stock has underperformed the BSE500 index over the last three years, one year, and three months, highlighting a consistent pattern of below-par performance relative to broader market benchmarks.

The majority shareholding remains with promoters, which may influence strategic decisions and capital allocation. However, this has not translated into a stabilisation of the stock price or a reversal of the downward trend.

Sector and Market Comparison

Operating within the commodity chemicals sector, National Peroxide’s stock performance contrasts with the broader market’s positive trajectory. While the Sensex trades near its 52-week high and maintains bullish moving averages, National Peroxide remains below all key moving averages, reflecting a divergence from sectoral and market trends.

The sector itself has shown mixed results, with small-cap stocks leading gains in the current market environment. National Peroxide’s relative underperformance within this context highlights the challenges it faces in regaining investor confidence and market share.

Summary of Current Concerns

Key factors contributing to National Peroxide’s 52-week low include sustained declines in operating profits, limited debt servicing capacity, and modest returns on equity. The stock’s trading below all major moving averages signals continued downward momentum. Additionally, the company’s reliance on non-operating income to support profitability raises questions about the sustainability of earnings.

Despite the broader market’s positive performance and sectoral gains, National Peroxide’s stock has not aligned with these trends, reflecting company-specific financial pressures and valuation risks.

Recent Trading Activity

Today’s trading session saw the stock fall to Rs.511, down 2.48% intraday, before recovering slightly by the close. The day’s change was marginal at -0.02%, indicating some stabilisation after recent declines. However, the stock remains in a downtrend, with the current price level representing a significant low point over the past year.

Conclusion

National Peroxide’s fall to a 52-week low of Rs.511 marks a notable event in the stock’s recent history, reflecting ongoing financial and valuation challenges. The company’s performance metrics over the past five years and recent periods illustrate pressures on profitability and earnings quality. While the broader market and sector show signs of strength, National Peroxide’s stock continues to trade at subdued levels, underscoring the need for careful monitoring of its financial developments and market positioning.

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