Tamilnad Mercantile Bank Ltd logo

Tamilnad Mercantile Bank Ltd

TMB NSE

Key Fundamentals

MicrocapPrivate BankBanks
Market Cap
₹13,561 Cr
Volatility
Moderate
P/E Ratio
9.31
EBITDA
₹1,899 Cr
Return on Equity
13.23%
Debt to Equity
0
Book Value
₹667
EPS
₹69.35
52W High
₹917
52W Low
₹411.8

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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54 extracted metrics + investor summaries across FY16–FY26.

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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

Revenue Growth
9.03% ↗
Net Income Growth
13.10% ↗
Cash Flow Change
-105.31% ↘
ROE
0.76% ↗
ROCE
-1.46% ↘
EBITDA Margin (Avg.)
2.35% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 6d ago
AI opinion · based on fundamentals
Risk medium

Tamilnad Mercantile Bank trades at a market cap of Rs.13,815 Cr with a PE of 9.6x and PB of 1.31x. The stock has delivered 103% returns over the past year while compounded profit growth stands at 20% TTM, though sales growth has remained modest at 10% over 5 years.

Bull Case 8
  • Stock CAGR of 103% over 1 year and 25% over 3 years indicates strong market re-rating
  • PE ratio of 9.6x is attractive relative to banking sector averages, suggesting undemanding valuation
  • Compounded profit growth of 20% TTM significantly outpaces revenue growth of 13% TTM, reflecting improving operating leverage
  • Consistent ROE of 14-15% over 3-5 years demonstrates stable return generation for shareholders
  • Price-to-book of 1.31x remains reasonable for a bank delivering 14% ROE consistently
  • Revenue growth accelerating from 10% (5-year CAGR) to 13% (3-year and TTM) shows improving business momentum
  • 5-year compounded profit CAGR of 17% reflects sustained earnings expansion over a longer cycle
  • Dividend yield of 1.43% provides a baseline income component for shareholders
Bear Case 8
  • Contingent liabilities of Rs.9,453 Cr represent a significant risk relative to Rs.13,815 Cr market cap
  • Low interest coverage ratio raises concerns about the bank's ability to service obligations under stress
  • 5-year sales growth of only 10% indicates sluggish top-line expansion for a mid-sized bank
  • Dividend payout of only 14.8% of profits over last 3 years limits shareholder returns and signals capital retention concerns
  • Potential capitalization of interest cost may overstate asset quality and understate true operating expenses
  • 3-year compounded profit CAGR of only 9% versus 17% over 5 years suggests a period of earnings deceleration in recent years
  • ROE declining marginally from 15% (5-year) to 14% (last year and 3-year) indicates slight pressure on profitability
  • After 103% stock rally in 1 year, current valuation may already reflect near-term positives leaving limited margin of safety

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 15m ago
Positives 3
  • Q1 profit surges 35% YoY Jul 28

    Net profit jumped 35% to ₹4,115 crore in Q1FY27 with NIM expanding to 4.29%. Deposits grew ~20% and advances ~27% YoY.

  • Asset quality sharply improves Jul 28

    GNPA ratio dropped to 0.69% in Q1FY27, reflecting significant strengthening of asset quality.

  • Active investor engagement ramp-up Jul 29

    TMB scheduled multiple analyst meets with Capital Group (Aug 4), Monarch Capital (Aug 6), I Wealth (Aug 11), Elara (Sep 2), and Anand Rathi (Sep 21), signaling strong institutional outreach.

Neutral 2
  • Email domain migration per RBI Jul 21

    TMB transitioned to @tmb.bank.in from @tmbank.in per RBI guidelines, with old domain active for 30 days.

  • Q1FY27 earnings call released Jul 27

    Audio recording of investor/analyst meet for quarter ended June 30, 2026 made available on bank website.

TL;DR: TMB delivered an exceptionally strong Q1FY27 with 35% profit growth, margin expansion to 4.29%, and sub-1% GNPA at 0.69%, while loan growth of 27% outpaced deposit growth of 20%. No material headwinds are visible in recent news flow. The bank is actively courting institutional investors through multiple scheduled meets, suggesting management confidence in the growth trajectory. Trend is clearly improving with no emerging risks flagged.

Quarterly Results

  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 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%
Figures in ₹ Crores

Profit & Loss

  Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
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%
—
Figures in ₹ Crores

Balance Sheet

  Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Cash Flow

  Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 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
Figures in ₹ Crores

Ratios

  Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
ROE %
7%
7%
11%
14%
17%
17%
14%
14%
14%

Shareholding Pattern

As of Jun 2026
Public 56.80%
Others 34.52%
FIIs 6.73%
DIIs 1.95%
Total 100.00%
  Sep 2021Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
3.45%
3.67%
4.08%
4.12%
4.22%
4.58%
4.65%
4.95%
6.19%
6.73%
DIIs
0.00%
6.04%
5.92%
5.76%
4.44%
3.72%
3.02%
3.19%
3.17%
2.66%
2.66%
2.66%
2.40%
2.41%
2.46%
1.91%
1.95%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
0.00%
57.34%
57.71%
58.18%
58.71%
58.07%
57.58%
59.56%
59.65%
59.59%
59.21%
58.98%
58.04%
57.69%
57.87%
57.35%
56.80%
Others
100.00%
36.62%
36.37%
36.06%
36.85%
38.21%
39.40%
33.81%
33.51%
33.67%
34.01%
34.14%
34.99%
35.25%
34.72%
34.56%
34.52%
No. of Shareholders
20,934
80,836
82,844
96,007
1,06,297
1,01,724
1,05,095
1,13,643
1,16,186
1,20,897
1,23,233
1,27,154
1,25,220
1,24,440
1,19,203
1,17,065
1,17,147

Documents

Frequently Asked Questions about Tamilnad Mercantile Bank Ltd

What does Tamilnad Mercantile Bank Ltd do?
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]
Where is Tamilnad Mercantile Bank Ltd (TMB) listed?
Tamilnad Mercantile Bank Ltd is listed on the Indian stock exchanges. It is listed on NSE: TMB and BSE: 543596. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Tamilnad Mercantile Bank Ltd belong to?
Tamilnad Mercantile Bank Ltd operates in the Financial Services sector within the Banks industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Tamilnad Mercantile Bank Ltd?
Tamilnad Mercantile Bank Ltd has a market capitalisation of approximately ₹13561.22 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Tamilnad Mercantile Bank Ltd?
The Price-to-Earnings (PE) ratio of Tamilnad Mercantile Bank Ltd is 9.31. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Tamilnad Mercantile Bank Ltd?
Over the past 52 weeks, Tamilnad Mercantile Bank Ltd has traded between a low of ₹411.8 and a high of ₹917. This range helps investors understand the stock's price volatility and recent trading levels.
Does Tamilnad Mercantile Bank Ltd pay dividends?
Yes, Tamilnad Mercantile Bank Ltd has a dividend yield of 1.48%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Tamilnad Mercantile Bank Ltd?
Tamilnad Mercantile Bank Ltd has a Return on Equity (ROE) of 13.23%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Tamilnad Mercantile Bank Ltd on Tapetide?
On Tapetide, you can view Tamilnad Mercantile Bank Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

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]

Website tmb.in
Listed 2022-09-15
Face Value ₹ 10
Issued Size 15,83,51,454

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