Tamilnadu Petro Products Ltd. (TNPETRO) AI Stock Analysis

• Market Cap: ₹8.40B
• Dividend Yield: 1.14%
• Average Volume (3M): 36.10K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 1.31
• Revenue Growth: 8.27%
• EPS Growth: 195.27%
• Country: IN
• Employees: 417
• Sector: Energy
• Sector Strength: 52
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 89,971,470
• 10 Day Avg. Volume: 15,625
• 30 Day Avg. Volume: 36,104
• PEG Ratio: 0.65
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -3.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹102.00 ▼(-3.09% Downside)

Tamilnadu Petro Products Ltd. has a solid financial performance with strong revenue growth and effective cost management, which is the most significant factor in the overall score. Technical analysis shows mixed signals with potential upward momentum. The valuation indicates the stock is reasonably priced, with a modest dividend yield. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth Trend

An ~8.3% revenue growth rate indicates sustained top-line expansion, supporting market share gains and scale economies. Over a 2–6 month horizon this trend suggests steady product demand and pricing resilience, enabling reinvestment and capacity optimization.

Balance Sheet Strength

Low leverage and a strong equity position provide financial flexibility to fund maintenance and strategic capex, absorb commodity cycles, and pursue opportunistic investments without stressing liquidity. This structural strength reduces solvency risk over time.

Operating Cash Generation

Robust operating cash flow relative to net income demonstrates durable cash generation from core operations. This supports working capital and routine operations through cycles and provides a foundation for funding investments or servicing obligations despite episodic FCF weakness.

Negative Factors

Negative Free Cash Flow

Sustained negative free cash flow driven by elevated capex indicates ongoing investment needs that exceed operational cash generation. Over months this can pressure liquidity, necessitate external financing, or constrain dividends unless investments deliver clear long-term returns.

Margin Pressure / Rising Costs

A decline in EBITDA and net margins signals rising operating costs that could erode profitability if persistent. Without offsetting pricing power or efficiency gains, margin compression can reduce free cash flow generation and long-term return on capital.

Feedstock and Demand Exposure

Heavy reliance on LAB and caustic soda ties earnings to feedstock price swings and detergent/industrial demand cycles. This structural exposure makes volumes and spreads sensitive to macro and commodity moves, creating recurring volatility in margins and earnings.

Tamilnadu Petro Products Ltd. Business Overview & Revenue Model

Company Description

Tamilnadu Petroproducts Limited manufactures and sells petrochemical and industrial intermediate chemical products in India. It offers linear alkyl benzene, an organic compound used in the manufacture of domestic detergents, institutional, and industrial cleaners under the SUPERLAB brand; caustic soda, a chemical for use in textile, pulp and paper, aluminum, and soap and detergent industries; and chlorine, a co-product of caustic soda for use in various sectors, including vinyl chloride, chlorinated paraffin wax, pulp and paper, water purification, chlorinated solvents, etc. The company also provides hydrogen and chlorine derivatives, such as hydrochloric acid, sodium hypo chlorite, and ammonium chloride; and propylene oxide, an organic, volatile, flammable, and colorless liquid compound for use in automobile, domestic home appliances, and industrial insulation sectors. It also exports its products. The company was incorporated in 1984 and is based in Chennai, India.

How the Company Makes Money

TNPETRO generates revenue through the manufacturing and sale of its core products, primarily linear alkyl benzene (LAB) and other specialty chemicals. The company benefits from a diversified customer base across various industries, including detergents, textiles, and personal care products. Key revenue streams include direct sales to end-users and distributors, as well as potential long-term contracts with significant industrial clients. Additionally, TNPETRO's strategic partnerships with suppliers and other stakeholders in the petrochemical sector enhance its market presence and operational efficiency, contributing positively to its earnings.

Tamilnadu Petro Products Ltd. Financial Statement Overview

Summary

Tamilnadu Petro Products Ltd. demonstrates a solid financial foundation with strong revenue growth and effective cost management. The balance sheet reflects prudent financial management with low leverage. Cash flow management presents challenges, particularly in free cash flow, due to high capital expenditures.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase in the most recent period. Gross profit margin remains strong, indicating effective cost management, although there was a dip in net profit margin due to increased expenses. EBIT and EBITDA margins reflect stable operational efficiency, but the recent decline in EBITDA margin suggests increasing operational costs.

Balance Sheet

Tamilnadu Petro Products Ltd. maintains a healthy equity position with a strong equity ratio, showcasing minimal reliance on debt. The debt-to-equity ratio is low, indicating conservative financial leverage. ROE has fluctuated but remains positive, reflecting some variability in profitability.

Cash Flow

Operating cash flow is robust, but free cash flow has been negative recently, largely due to high capital expenditures. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the negative free cash flow to net income ratio highlights potential concerns with capital investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.26B	18.27B	16.65B	21.47B	18.02B	11.43B
Gross Profit	6.00B	3.43B	6.57B	8.96B	8.98B	5.97B
EBITDA	1.19B	634.30M	946.37M	1.52B	2.66B	2.05B
Net Income	785.50M	583.50M	500.64M	941.90M	1.75B	1.26B
Balance Sheet
Total Assets	0.00	13.54B	10.91B	11.07B	9.81B	7.94B
Cash, Cash Equivalents and Short-Term Investments	3.66B	3.31B	3.88B	3.81B	3.57B	2.94B
Total Debt	0.00	1.35B	179.90M	762.50M	702.01M	512.17M
Total Liabilities	-9.12B	4.42B	2.31B	2.81B	2.33B	2.03B
Stockholders Equity	9.12B	9.12B	8.59B	8.25B	7.48B	5.91B
Cash Flow
Free Cash Flow	0.00	-1.80B	1.16B	25.80M	716.93M	899.36M
Operating Cash Flow	0.00	2.07B	1.61B	873.60M	1.12B	1.00B
Investing Cash Flow	0.00	-2.44B	-696.07M	-670.10M	-955.97M	-874.53M
Financing Cash Flow	0.00	1.00B	-784.21M	-123.20M	-223.82M	-60.12M

Tamilnadu Petro Products Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TNPETRO, the sentiment is Negative. The current price of 105.25 is above the 20-day moving average (MA) of 96.16, above the 50-day MA of 101.46, and above the 200-day MA of 99.19, indicating a bearish trend. The MACD of -2.98 indicates Negative momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 46.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TNPETRO.

Tamilnadu Petro Products Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONGC	72 Outperform	₹3.20T	8.75	―	5.21%	0.10%	-10.18%
MRPL	71 Outperform	₹310.91B	14.27	―	2.04%	-11.96%	14.31%
IOC	68 Neutral	₹2.32T	9.11	―	4.90%	-0.93%	42.85%
CHENNPETRO	67 Neutral	₹128.69B	5.98	―	0.55%	-4.61%	63.26%
HINDPETRO	67 Neutral	₹963.80B	6.26	―	3.26%	-1.81%	231.75%
TNPETRO	66 Neutral	₹8.40B	7.77	―	1.14%	8.27%	195.27%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Tamilnadu Petro Products Ltd. Corporate Events

TNPETRO Appoints IAS Officer Sandhya Venugopal Sharma as Non-Executive Chairperson

Tamilnadu Petroproducts Limited has announced the appointment of Ms. Sandhya Venugopal Sharma, IAS, as an Additional Director in the non-executive category and as Chairperson of its Board with effect from 14 January 2026, with shareholder approval to be obtained in line with listing regulations. Nominated to the Board by promoter Tamilnadu Industrial Development Corporation Limited, Ms. Sharma brings extensive administrative and leadership experience from senior roles in the Tamil Nadu and central governments, including positions in the Department of Space and TIDCO, and the company has confirmed that she is not debarred from holding a directorship under any regulatory order.

Tamilnadu Petroproducts Files SEBI-Mandated Demat and Remat Share Statement for December 2025

Tamilnadu Petroproducts Ltd. has submitted to BSE and NSE the statutory certificate and detailed register of shares that were dematerialised and rematerialised between 16 December 2025 and 31 December 2025, in compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The disclosure, which itemises folios, certificate numbers and quantities converted through NSDL and CDSL, underscores the company’s adherence to securities market regulations and provides transparency on share transfer and holding patterns for investors and regulators.

Tamilnadu Petroproducts Files SEBI-Mandated Dematerialisation Statement for Early December

Tamilnadu Petroproducts Limited has submitted to both BSE and the National Stock Exchange a regulatory certificate under SEBI (Depositories & Participants) Regulations, 2018, detailing the equity shares that were dematerialised and rematerialised between 1 December 2025 and 15 December 2025. The filing, which includes folio-wise data on the number of certificates and shares converted, underscores the company’s ongoing compliance with depository regulations and facilitates transparent tracking of changes in its shareholding in electronic and physical form for market participants and regulators.

Tamilnadu PetroProducts Nears Completion of LAB Plant Expansion

Tamilnadu PetroProducts Limited announced that the expansion of its Linear Alkyl Benzene (LAB) plant is nearing completion, with an increase in capacity from 120 KTPA to 145 KTPA. To facilitate the final stages of this expansion, the LAB plant will undergo a planned shutdown for approximately 8 to 9 weeks starting December 11, 2025. This expansion is expected to enhance the company’s production capabilities and strengthen its market position in the petrochemical sector.

Tamilnadu PetroProducts Urges Shareholders to Register Emails for Postal Ballot Notices

Tamilnadu PetroProducts Limited has issued a public notice requesting shareholders to register their email addresses to receive notices of postal ballots. This initiative is part of the company’s compliance with regulatory requirements and efforts to promote a ‘Green initiative’ in corporate governance by reducing paper usage. The notice also informs shareholders about the transfer of shares to the Investor Education and Protection Fund Authority if dividends remain unclaimed for seven consecutive years, urging them to update their KYC details to avoid this.

Tamilnadu PetroProducts Updates on Share Dematerialization

Tamilnadu PetroProducts Limited has informed the stock exchanges about the dematerialization of share certificates for the period from October 1, 2025, to October 15, 2025, in compliance with SEBI regulations. This announcement reflects the company’s adherence to regulatory requirements, ensuring transparency and efficiency in its shareholding processes, which can positively impact stakeholder confidence.