Recent Price Movements and Market Context
On 29 Dec 2025, National Peroxide’s stock recorded a day change of 1.37%, slightly outperforming the Sensex’s 0.13% gain. However, this modest uptick contrasts with the broader trend over recent months. The stock has underperformed its sector by 0.78% today and has been trading within a narrow range of ₹0.15, indicating limited volatility but persistent weakness.
Over the past two days, the stock has declined by 2.26%, continuing a sequence of losses. Its position below the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages underscores a sustained bearish trend. This technical positioning suggests that the stock has not found significant buying interest to reverse its downward momentum.
Performance Relative to Benchmarks
National Peroxide’s performance over various time frames reveals a pattern of underperformance relative to the Sensex. Over one day and one week, the stock has marginally outpaced the benchmark, with returns of 1.37% and 0.63% respectively, compared to Sensex returns of 0.13% and -0.48%. However, the picture changes markedly over longer periods.
In the last month, the stock has recorded a return of -8.11%, while the Sensex declined by only 0.64%. Over three months, National Peroxide’s return stands at -20.08%, contrasting with the Sensex’s positive 5.96%. The divergence is even more pronounced over the last year, with the stock posting a -41.04% return against the Sensex’s 8.20% gain. Year-to-date figures show a similar trend, with National Peroxide down 39.81% while the Sensex advanced 8.98%.
Longer-term data indicates a lack of growth in shareholder value, with the stock showing no returns over three, five, and ten-year periods, while the Sensex has delivered 39.29%, 78.85%, and 226.53% respectively. This stark contrast highlights the stock’s challenges in generating sustained value for investors over time.
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Financial Metrics and Profitability Analysis
National Peroxide’s financial indicators reveal considerable strain. 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 decline in operating profitability is a key factor in the stock’s subdued market performance.
The company’s ability to service its debt is limited, with an average EBIT to interest ratio of 0.14. This ratio suggests that earnings before interest and tax are insufficient to comfortably cover interest expenses, raising concerns about financial stability.
Return on equity (ROE) averages at 1.90%, reflecting low profitability relative to shareholders’ funds. Such a figure indicates that the company has struggled to generate meaningful returns for its equity investors.
Recent Earnings and Income Composition
In the latest six-month period, the company reported a profit after tax (PAT) of ₹1.28 crore, which represents a decline of 77.78% compared to the previous corresponding period. This contraction in net profit further emphasises the challenges faced by National Peroxide in maintaining earnings momentum.
Non-operating income constitutes 263.49% of profit before tax (PBT), indicating that a substantial portion of the company’s profitability is derived from sources outside its core operations. This reliance on non-operating income may not be sustainable in the long term and adds to the complexity of the company’s financial profile.
Valuation and Risk Considerations
The stock is currently trading at levels that suggest elevated risk when compared to its historical valuations. Over the past year, while the stock has generated a return of -41.04%, its profits have fallen by 113%, signalling a disconnect between market price and earnings performance.
National Peroxide’s returns have lagged behind the broader BSE500 index over the last three years, one year, and three months, underscoring its below-par performance relative to a wide market benchmark. This persistent underperformance highlights the challenges the company faces in regaining investor confidence and market traction.
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Shareholding and Sector Placement
National Peroxide operates within the commodity chemicals industry, a sector characterised by cyclical demand and sensitivity to raw material prices. The company’s majority shareholding is held by promoters, indicating concentrated ownership.
Despite the sector’s inherent volatility, National Peroxide’s stock has not demonstrated resilience in recent years, as evidenced by its prolonged decline and failure to generate positive returns over multiple time horizons.
Summary of Current Situation
National Peroxide’s stock reaching an all-time low near ₹470 marks a significant milestone in its recent market journey. The combination of weak financial metrics, subdued profitability, and underperformance relative to benchmarks paints a picture of a company facing considerable headwinds. Trading below all major moving averages and within a narrow price range, the stock reflects a cautious market stance.
While the company remains a part of the commodity chemicals sector, its financial and market indicators suggest that it has yet to overcome the challenges that have constrained its growth and shareholder returns over the past several years.
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