National Peroxide Stock Hits All-Time Low Amidst Prolonged Downtrend

Stock Performance Overview

On 4 December 2025, National Peroxide’s stock closed near its 52-week low, just 2.66% above the lowest price recorded in the past year at ₹511. The stock’s one-day movement registered a decline of 2.35%, contrasting with the Sensex’s modest gain of 0.18% on the same day. Over the past week, the stock’s performance showed a reduction of 5.23%, while the Sensex recorded a smaller fall of 0.54%.

Looking at broader time frames, the stock’s trajectory has been notably subdued. Over the last month, National Peroxide’s shares have declined by 14.35%, whereas the Sensex has advanced by 2.16%. The three-month period shows a 17.36% reduction in the stock’s value, compared to a 5.63% rise in the benchmark index. The one-year performance reveals a significant drop of 42.12%, while the Sensex has appreciated by 5.31% during the same period. Year-to-date figures indicate a 36.70% decline for National Peroxide, contrasting with a 9.11% gain for the Sensex.

Notably, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downward trend without signs of near-term recovery.

Financial Health and Profitability Metrics

National Peroxide’s financial indicators reveal a challenging environment for the company. Over the past five years, the compound annual growth rate (CAGR) of operating profits has registered a negative 135.58%, indicating a contraction in core earnings capacity. This trend is further reflected in the company’s ability to service its debt, with an average EBIT to interest ratio of just 0.14, suggesting limited earnings available to cover interest obligations.

The company’s return on equity (ROE) averages at 1.90%, a figure that points to modest profitability relative to shareholders’ funds. This low ROE highlights the limited efficiency in generating returns from invested capital.

Recent half-year results show a profit after tax (PAT) of ₹1.28 crore, which has declined by 77.78% compared to the previous period. Additionally, non-operating income for the quarter accounts 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 operations.

Market Valuation and Risk Considerations

The stock’s valuation appears stretched relative to its historical averages, with returns over the past year at -42.12% and profits contracting by 113%. This combination points to a heightened risk profile for investors, as the company’s financial performance has not aligned favourably with market expectations.

In comparison to the broader market, National Peroxide has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. While the BSE500 has shown positive returns, National Peroxide’s stock has remained stagnant or declined, reflecting persistent challenges in maintaining competitive performance within the commodity chemicals sector.

Shareholding and Industry Context

Promoters remain the majority shareholders of National Peroxide, maintaining significant control over the company’s strategic direction. The firm operates within the commodity chemicals industry, a sector known for its cyclical nature and sensitivity to raw material price fluctuations and global demand patterns.

Summary of Current Situation

National Peroxide’s stock performance and financial data collectively illustrate a company facing a prolonged period of subdued market valuation and earnings contraction. The stock’s proximity to its 52-week low, combined with negative returns over multiple time horizons, highlights the extent of the challenges within its operational and financial framework.

While the company remains under the stewardship of its promoters and continues to operate in the commodity chemicals sector, the data suggests that the stock is trading with a risk profile that diverges significantly from broader market indices and sector peers.

Investors and market participants observing National Peroxide will note the persistent downward trend in share price and the subdued profitability metrics as key factors shaping the current market assessment of the company.

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