Tamilnad Mercantile Bank Ltd
Tamilnad Mercantile Bank Ltd
Financial ServicesKey Fundamentals
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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54 extracted metrics + investor summaries across FY16–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Weaknesses
5- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of 10.0% over past five years.
- Contingent liabilities of Rs.9,453 Cr.
- Company might be capitalizing the interest cost
- Dividend payout has been low at 14.8% of profits over last 3 years
Growth Rate
AI Analysis — Bull vs Bear
Tamilnad Mercantile Bank trades at a PE of 9.3x and PB of 1.27x with a market cap of Rs.13,561 Cr. The bank has delivered 13% TTM revenue growth and 20% TTM profit growth, while its stock has appreciated 98% in the last one year. ROE has remained steady at 14% over the last three years.
- Stock has delivered exceptional 98% return in the last 1 year, indicating strong market re-rating and investor interest
- TTM profit growth of 20% significantly outpaces revenue growth of 13%, suggesting improving operating leverage and cost efficiency
- PE ratio of 9.3x is relatively low for a bank delivering consistent 14% ROE, suggesting potential undervaluation versus peers
- Consistent ROE of 14-15% over the last 3-5 years indicates stable return generation and disciplined capital allocation
- Compounded profit growth of 17% over 5 years demonstrates sustained earnings momentum over a longer horizon
- 3-year stock CAGR of 21% reflects sustained value creation beyond just a single-year spike
- Revenue growth has accelerated from 10% (5-year CAGR) to 13% (3-year and TTM), showing an improving top-line trajectory
- Price-to-book of 1.27x is modest for a bank generating 14% ROE, leaving room for multiple expansion
- Contingent liabilities of Rs.9,453 Cr are significant relative to the bank's market cap of Rs.13,561 Cr, representing a material risk if crystallized
- Low interest coverage ratio raises concerns about the bank's ability to service its obligations in a stressed scenario
- 5-year compounded sales growth of only 10% indicates structurally slow top-line expansion compared to faster-growing private banks
- Dividend payout of just 14.8% of profits over the last 3 years provides limited income return to shareholders despite a dividend yield of 1.48%
- Possible capitalization of interest costs may overstate reported profitability and asset values
- 3-year compounded profit CAGR of only 9% is notably lower than the 5-year figure of 17%, suggesting recent earnings growth has been uneven
- Absence of 10-year data for several growth metrics limits visibility into the bank's long-term track record and cyclical resilience
- After a 98% rally in one year, the stock's risk-reward may be less favorable at current levels without proportional improvement in fundamentals
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Q1 profit surges 35% YoY Jul 28
Net profit jumped 35% to ₹4,115 crore in Q1FY27 with NIM expanding to 4.29%, while deposits grew ~20% and advances ~27%.
- Asset quality sharply improves Jul 28
GNPA dropped to 0.69% in Q1FY27, reflecting significant strengthening of asset quality.
- Active investor engagement push Jul 29
TMB has scheduled multiple analyst/investor meets with Capital Group (Aug 4), Monarch Capital (Aug 6), I Wealth India (Aug 11), Elara (Sep 2), and Anand Rathi (Sep 21), signaling proactive institutional outreach.
- Email domain migration per RBI Jul 21
TMB shifted to @tmb.bank.in from @tmbank.in per RBI guidelines; old domain remains active for 30 days.
- Q1FY27 earnings call released Jul 27
Audio recording of the investor/analyst meet for unaudited Q1FY27 results (quarter ended June 30, 2026) made available on the bank's website.
TL;DR: TMB delivered an excellent Q1FY27 with 35% profit growth, strong NIM expansion to 4.29%, and sharply improved asset quality (GNPA at 0.69%). The bank is aggressively engaging institutional investors through multiple scheduled meets. No visible headwinds emerged in this period. The trend is clearly improving with robust growth across deposits, advances, and profitability metrics.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 1,156 | 1,209 | 1,229 | 1,254 | 1,281 | 1,337 | 1,331 | 1,342 | 1,386 | 1,413 | 1,469 | 1,550 | 1,662 |
| Expenses | 340 | 347 | 327 | 388 | 417 | 423 | 355 | 382 | 407 | 373 | 375 | 443 | 446 |
| Financing Profit | 174 | 186 | 210 | 179 | 150 | 173 | 216 | 186 | 173 | 224 | 271 | 262 | 319 |
| Fin. Margin % | 15% | 15% | 17% | 14% | 12% | 13% | 16% | 14% | 12% | 16% | 18% | 17% | 19% |
| Other Income | 167 | 156 | 158 | 164 | 234 | 227 | 189 | 200 | 231 | 208 | 196 | 242 | 238 |
| Interest | 642 | 676 | 692 | 687 | 715 | 741 | 761 | 774 | 807 | 816 | 823 | 846 | 897 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 341 | 342 | 368 | 343 | 383 | 400 | 404 | 387 | 404 | 432 | 467 | 504 | 557 |
| Tax % | 23% | 20% | 23% | 26% | 25% | 24% | 26% | 25% | 25% | 27% | 27% | 26% | 26% |
| Net Profit | 261 | 274 | 284 | 253 | 287 | 303 | 300 | 292 | 305 | 318 | 342 | 374 | 412 |
| EPS in Rs | 16.5 | 17.27 | 17.95 | 15.98 | 18.14 | 19.15 | 18.96 | 18.43 | 19.25 | 20.05 | 21.57 | 23.6 | 25.99 |
| Gross NPA % | 1.56% | 1.7% | 1.69% | 1.44% | 1.44% | 1.37% | 1.32% | 1.25% | 1.22% | 1.01% | 0.91% | 0.73% | 0.69% |
| Net NPA % | 0.66% | 0.99% | 0.98% | 0.85% | 0.65% | 0.46% | 0.41% | 0.36% | 0.33% | 0.26% | 0.2% | 0.18% | 0.17% |
Profit & Loss
| Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 3,250 | 3,224 | 3,466 | 3,609 | 3,834 | 4,081 | 4,848 | 5,291 | 5,819 | 6,096 |
| Expenses | 1,366 | 1,350 | 1,231 | 1,355 | 1,470 | 1,276 | 1,327 | 1,490 | 1,505 | 1,637 |
| Financing Profit | -157 | -120 | 89 | 183 | 346 | 818 | 824 | 811 | 1,022 | 1,076 |
| Fin. Margin % | -5% | -4% | 3% | 5% | 9% | 20% | 17% | 15% | 18% | 18% |
| Other Income | 506 | 414 | 526 | 644 | 812 | 629 | 645 | 850 | 877 | 884 |
| Interest | 2,041 | 1,994 | 2,147 | 2,072 | 2,019 | 1,987 | 2,697 | 2,990 | 3,292 | 3,383 |
| Depreciation | 40 | 36 | 30 | 29 | 33 | 54 | 75 | 86 | 93 | 0 |
| PBT | 310 | 259 | 585 | 798 | 1,125 | 1,394 | 1,394 | 1,575 | 1,807 | 1,960 |
| Tax % | 28% | 0% | 30% | 24% | 27% | 26% | 23% | 25% | 26% | — |
| Net Profit | 222 | 259 | 408 | 603 | 822 | 1,029 | 1,072 | 1,183 | 1,338 | 1,444 |
| EPS in Rs | 15.57 | 18.14 | 28.61 | 42.34 | 57.67 | 65 | 67.7 | 74.68 | 84.47 | 91.21 |
| Div. Payout % | 21% | 13% | 0% | 0% | 9% | 8% | 15% | 15% | 15% | — |
Balance Sheet
| Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 143 | 143 | 143 | 143 | 143 | 158 | 158 | 158 | 158 |
| Reserves | 3,262 | 3,476 | 3,837 | 4,437 | 5,193 | 6,770 | 7,763 | 8,850 | 9,952 |
| Borrowing | 513 | 0 | 324 | 0 | 0 | 525 | 1,301 | 500 | 700 |
| Deposits | 32,428 | 35,136 | 36,825 | 40,970 | 44,933 | 47,766 | 49,515 | 53,689 | 61,712 |
| Other Liabilities | 1,522 | 1,719 | 1,604 | 1,948 | 2,559 | 2,646 | 2,815 | 3,252 | 2,777 |
| Total Liabilities | 37,868 | 40,473 | 42,733 | 47,499 | 52,828 | 57,866 | 61,552 | 66,450 | 75,300 |
| Fixed Assets | 140 | 138 | 128 | 137 | 211 | 246 | 271 | 284 | 311 |
| CWIP | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | 10,364 | 9,107 | 9,467 | 11,703 | 13,242 | 14,156 | 15,263 | 15,101 | 15,693 |
| Other Assets | 27,364 | 31,228 | 33,137 | 35,658 | 39,374 | 43,464 | 46,019 | 51,065 | 59,296 |
| Total Assets | 37,868 | 40,473 | 42,733 | 47,499 | 52,828 | 57,866 | 61,552 | 66,450 | 75,300 |
Cash Flow
| Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| Operating | -389 | 0 | 567 | -670 | 1,325 | -1,270 | -611 | 1,899 | -101 |
| Investing | -26 | 0 | -20 | -37 | -107 | -89 | -100 | -99 | -118 |
| Financing | 472 | 0 | 269 | -324 | -71 | 1,088 | 697 | -960 | 26 |
| Net Cash Flow | 58 | 0 | 816 | -1,031 | 1,147 | -270 | -14 | 840 | -193 |
| Free Cash Flow | -414 | 0 | 547 | -707 | 1,218 | -1,358 | -711 | 1,800 | -219 |
| CFO/OP | -21 | 0 | 25 | -30 | 56 | -32 | -8 | 60 | 8 |
Ratios
| Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| ROE % | 7% | 7% | 11% | 14% | 17% | 17% | 14% | 14% | 14% |
Documents
Frequently Asked Questions about Tamilnad Mercantile Bank Ltd
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Company Information
Incorporated in 1921, Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks in India. It offers an array of banking and financial services to retail customers, micro, small, and medium enterprises (MSMEs).[1]