National Peroxide Limited

Basic Materials — Specialty Chemicals · BSE

₹588.65−₹0.85 (−0.14%)

DalalBaazaar Score

37 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:52 pm

Understanding the Business

Company site ↗

The 60-second version of National Peroxide Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

National Peroxide Limited manufactures and sells hydrogen peroxide in India.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees124

Annual revenue₹288 Cr

How does it make money?

Turns over ₹288 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 124 employees supports ₹2.32 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.32 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 2.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -23% while net margin moved -81% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-23%

Margin effect-81%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 8.4% a year
✗ Profit has declined at 47.2% a year

Quality vs. Valuation

Company Quality

38/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

37/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

58.1x

2Y Median

20.1x

29 monthly readings · mean 21.3x · range 12.0x–35.2x

Sector Median

40.4x

median of 4 sector peers

⚠️Current valuation is approximately 188% above its 2y median of 20.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 44% above the peer median of 40.4x.

vs. its own history

Expensive

20.1x median over 29 months · +188%

vs. sector peers

Expensive

40.4x median of 4 peers · +44%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

11.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 46% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 11.2% to 1.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.1% to 2.2% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 3.51x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.2 points, from 17.0% to 9.8%.
🟡Profit is decliningFinancial
Net profit is down 85% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 46% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 17.0% to 9.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.51x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 188% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 11.2% to 1.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 8%✓ 9.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹30 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 2.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 6.5x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹338 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

58.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.93x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹10.13

Profitable

Profitable on a per-share basis

ROE

1.6%

Weak

Weak capital efficiency

ROCE

2.2%

Weak

Low return on total capital employed

Debt/Equity

3.51x

High

High leverage

Revenue Growth (YoY)

44.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

641.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.19%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹30 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.3%

Average

Average margins

Net Margin

5.3%

Average

Average bottom-line conversion

Current Ratio

2.77

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.46

High swing

Swings more than the market in both directions

52W Range Position

68%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

589.4 / 610.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

52.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹375 Cr	₹331 Cr	₹286 Cr	₹288 Cr	-8.4%
EBITDA	₹64 Cr	₹41 Cr	₹18 Cr	₹28 Cr	-23.7%
EBITDA Margin	17.0%	12.3%	6.5%	9.8%	—
PAT (Net Profit)	₹40 Cr	₹17 Cr	-₹2 Cr	₹6 Cr	-47.2%
EPS	₹68.73	₹29.22	₹-3.91	—	—
ROE	11.2%	4.7%	-0.6%	1.6%	—
ROCE	14.1%	5.6%	-0.1%	2.2%	—
Total Debt	₹23 Cr	₹20 Cr	₹16 Cr	₹13 Cr	-18.4%
Free Cash Flow	₹61 Cr	₹22 Cr	₹14 Cr	₹30 Cr	-21.3%

🔴 Revenue has shrunk at 8.4% a year over 3 years.

🔴 EBITDA has shrunk at 23.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 17.0% to 9.8% over 3 years (-7.2 pts).

🔴 PAT (Net Profit) has shrunk at 47.2% a year over 3 years.

🔴 ROE has fallen from 11.2% to 1.6% over 3 years (-9.6 pts).

🔴 ROCE has fallen from 14.1% to 2.2% over 3 years (-12.0 pts).

🟢 Total Debt has shrunk at 18.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 21.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹459 Cr

Total Liabilities

₹102 Cr

Cash & Equivalents

₹19 Cr

Operating Cash Flow

₹34 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.2%

Corporate Actions

Dividend Rate

₹7

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

2 mixed4 general

National Peroxide Upper Circuit Today: Price, Data and Peers

Univest, 09 Oct

National Peroxide Ltd is Rated Hold

MarketsMojo, 16 Oct

National Peroxide Ltd defers Q1FY26 results board meeting

scanx.trade, 02 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

National Peroxide posts Q1FY27 profit of ₹660.89 lakh; restates FY26 results

scanx.trade, 12 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

What is the Hydrogen Peroxide Market Size?

Precedence Research, 15 Sept

POEL Stock Price and Chart — NSE:POEL

TradingView, 18 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑