National Peroxide Stock Hits All-Time Low Amid Prolonged Downtrend

Price Movement and Market Context

On 8 December 2025, National Peroxide opened the trading session with a gap down of approximately 2%, reflecting ongoing pressures on the stock. Despite touching an intraday high of Rs. 512.90, the share ultimately settled near its lowest point of the day at Rs. 490.15. This level represents both a 52-week and all-time low for the company’s stock price.

While the stock outperformed its sector by 2.68% on the day, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. The day’s performance showed a marginal decline of 0.03%, contrasting with the broader Sensex index which recorded a fall of 0.24%.

Comparative Performance Over Various Timeframes

National Peroxide’s share price has exhibited a downward trajectory over multiple time horizons. The stock’s performance over the last week shows a decline of 3.18%, compared to a minor fall of 0.15% in the Sensex. The one-month period reveals a sharper contraction of 14.06%, while the Sensex posted a positive return of 2.76% during the same timeframe.

Over three months, the stock’s value has contracted by 18.03%, whereas the Sensex gained 5.85%. The disparity widens further over the one-year period, with National Peroxide’s share price down by 43.75%, in contrast to the Sensex’s 4.65% rise. Year-to-date figures also highlight a 37.50% decline for the stock against a 9.43% gain in the benchmark index.

Longer-term data indicates that National Peroxide’s stock has not recorded appreciable gains over the past three, five, and ten years, remaining flat, while the Sensex has advanced by 36.66%, 87.49%, and 237.84% respectively over these periods.

Financial Health and Profitability Metrics

National Peroxide’s financial indicators reflect ongoing difficulties in generating sustainable profitability. The company’s operating profits have shown a compound annual growth rate (CAGR) of -135.58% over the last five years, indicating a contraction in core earnings capacity.

The firm’s ability to service its debt obligations is limited, as evidenced by an average EBIT to interest ratio of 0.14, which suggests that earnings before interest and taxes are insufficient to comfortably cover interest expenses. This ratio points to a constrained financial flexibility in managing debt costs.

Return on equity (ROE) averages at 1.90%, signalling modest profitability relative to shareholders’ funds. Such a low ROE highlights challenges in generating value for equity investors over the medium term.

Recent Earnings and Income Composition

In the latest six-month period, the company reported a profit after tax (PAT) of Rs. 1.28 crore, which represents a decline of 77.78% compared to the previous corresponding period. This subdued earnings figure underscores the pressures on the company’s bottom line.

Non-operating income has accounted for 263.49% of profit before tax (PBT) in the most recent quarter, indicating that a significant portion of earnings is derived from sources outside the company’s primary business activities. This reliance on non-operating income may reflect volatility in core business performance.

Valuation and Risk Considerations

The stock is currently trading at levels considered risky relative to its historical valuation benchmarks. Over the past year, the share price has declined by 43.75%, while profits have contracted by 113%, signalling a challenging environment for the company’s financial health.

National Peroxide’s performance has lagged behind the broader BSE500 index across multiple periods, including the last three months, one year, and three years, further emphasising the stock’s underperformance within the market.

Shareholding and Sector Placement

The company operates within the commodity chemicals industry and sector, with promoters holding the majority shareholding stake. This concentrated ownership structure may influence strategic decisions and company direction.

Summary of Current Position

National Peroxide’s stock has reached an unprecedented low point, reflecting a combination of subdued financial results, weak profitability metrics, and a prolonged period of underperformance relative to market benchmarks. The share price remains below all major moving averages, underscoring the prevailing downtrend.

While the company continues to operate within the commodity chemicals sector, its financial indicators suggest ongoing challenges in generating consistent earnings and managing debt obligations effectively. The recent earnings figures and income composition further illustrate the pressures on the company’s core business operations.

Investors and market participants observing National Peroxide will note the significant divergence between the stock’s performance and broader market indices, as well as the company’s historical valuation levels.

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