Cmp-1598
National Peroxide Limited (NPL) a 65 years old almost debt free company, part of Wadia Group is is engaged in the manufacturing business in India for peroxygen chemicals.
Established in 1954, National Peroxide (NPL) was jointly promoted by The Bombay Dyeing & Manufacturing Company and Laporte Industries, UK. NPL is a pioneer in India for peroxygen chemicals and is the largest manufacturer of Hydrogen Peroxide in India, with an installed capacity of 95,000 MTPA on 50% w/w. basis. The peroxygens division of the company manufactures hydrogen peroxide and persalts. And the other plastic additives division produces, litharge and PVC stabilisers. The Company also produces the “Compressed Hydrogen Gas” and “Per Acetic Acid”.
What is Hydrogen Peroxide and its uses: Hydrogen peroxide is a pale blue clear liquid slightly more viscous than water. Hydrogen Peroxide is mainly used as a non-polluting oxidizing agent and is used as an oxidizer, bleaching agent and disinfectant. It is used for refining non-edible oil, water and effluent treatment, paper pulp bleaching, chemical synthesis, textile bleaching industry, sugar bleaching industry and metallurgy industry. Hydrogen peroxide is the simplest form of peroxide constitute only hydrogen and oxygen in the world which has application in almost all the types of food and beverages.
Group Information-: The Wadia Group is one of the oldest conglomerates of India. The group was founded by Parsi Lovji Nusserwanjee Wadia in 1736. Lovji Wadia secured contracts with the British East India Company to build ships and docks in Bombay in 1736. This, and subsequent efforts, resulted in Bombay becoming a strategic port for the British colonial undertakings in Asia. The Wadia group consists of several companies, four of which are listed on Indian stock exchanges. Bombay Dyeing- Est1879. Bombay Burmah Trading Corporation Est1863. Britannia Industries – Est1918. National Peroxide Limited -Est1999.
Financials-: On the financial front the company has delievered a solid Sales growth of 11% and 20% over 5 and 3 years period. Apart from that the Compounded net profit Growth rate of the company stands at 32% & 101% over the 5 and 3 year period respectively. Company has negligible debt . Its return ratios are at ~25% and ~39% (RoA and RoCE respectively) which are very healthy.
Apart, NPL also holds investments in mutual funds & equity stake in companies including group companies BBTC and Bombay dyeing. Stock is currently down about 68% from its 52 week high.
