Tamilnadu Petroproducts Set For Breakout? SEBI Analyst Sees ₹200 Potential If Sector Turns

Shares of Tamilnadu Petroproducts are drawing attention as the stock shows signs of recovery after a prolonged period of consolidation and correction since 2022.

Technical View

SEBI-registered analyst Deepak Pal said the current monthly chart indicates strong buying interest. He noted immediate support is in the ₹95–₹100 zone, with strong support at ₹75–₹80. 

Resistance lies at ₹115–₹120, and a breakout above that level could open a move toward ₹135–₹145. According to him, relative strength index (RSI) at 62 shows positive momentum without being overbought, while moving average convergence divergence (MACD) is slowly turning bullish and the Parabolic SAR has flipped below price action, both adding to the positive setup. 

Pal said that sustaining above ₹110 could pave the way for ₹135 or more in the coming months.

Fundamental View

Pal pointed out that the company is engaged in producing industrial chemicals such as LAB, Caustic Soda, and Epichlorohydrin, which are used in detergents, textiles, pharmaceuticals and other industries. 

He estimated revenue at over ₹5,000 crore for FY25, while profitability remains volatile given the commodity-linked nature of the business. Debt is relatively low and the balance sheet has been improving. 

Strategic importance in detergent raw material and rising demand in FMCG and textiles were listed as positives, while risks include crude oil–linked cyclicality and competition from imports.

Key Drivers And Events

According to Pal, crude oil movement will remain a major driver of margins, with rising crude likely to pressure profitability and falling crude providing relief. Government policies, especially incentives for the chemical sector, could give the company’s margins a lift. 

Deepak Pal pointed to the upcoming second quarter (Q2) results as an important trigger, with signs of demand recovery likely to drive a re-rating. He added that global petrochemical demand, particularly from China and the U.S., will play a big role. 

On the company side, he highlighted improved operational efficiency, a strong position in LAB, an expected increase in FMCG demand after the monsoon, and management’s ongoing focus on reducing costs and optimizing capacity utilization.

Outlook 

At the macro level, Pal highlighted that India’s GDP growth above 7% supports chemical demand, while urban consumption is driving demand for detergents and cleaning chemicals. The government's push for self-reliance under the “Make in India” initiative is a tailwind, although crude volatility remains the biggest risk. 

Looking ahead, Pal said the stock may trade in the ₹95–₹135 range over the next three to six months, with a sustained close above ₹120 triggering a fresh breakout. 

Over one to three years, he said the stock has the potential to test ₹180–₹200 if the chemical sector cycle turns favorable.

What Is The Retail Mood?

On Stocktwits, retail sentiment for Tamilnadu Petroproducts was ‘bullish’ amid ‘normal’ message volume.

Tamilnadu Petroproducts’ stock has declined 12.7% so far in 2025.

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