Tamilnad Mercantile Bank Ltd
TMB NSE
Tamilnad Mercantile Bank Ltd
Financial ServicesNSE: TMB BSE: 543596 Banks
Key Fundamentals
MicrocapPrivate BankBanksMarket Cap
₹13,842 Cr
Volatility
Moderate
P/E Ratio
9.59
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
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
Log in to view Tamilnad Mercantile Bank Ltd insights
54 extracted metrics + investor summaries across FY16–FY26.
Tapetide Score
Data-driven rating, 0–100. How it works →
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 claude-opus-4.6 8d agoAI opinion · based on fundamentals
Risk medium
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.
Bull Case 8
- 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
Bear Case 8
- 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
anthropic claude-opus-4.6 8d 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%, 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.
Neutral 2
- 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
1
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
4 May - Tamilnad Mercantile Bank Limited has informed about Schedule of meet 4 May - Tamilnad Mercantile Bank Limited has informed about Schedule of meet
2
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome
2d - Video recording of investor and analyst meet held on May 8, 2026, uploaded on bank website. 2d - Video recording of investor and analyst meet held on May 8, 2026, uploaded on bank website.
3
Announcement under Regulation 30 (LODR)-Investor Presentation
8 May - Tamilnad Mercantile Bank Limited has informed about Investor Presentation 8 May - Tamilnad Mercantile Bank Limited has informed about Investor Presentation
4
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
30 Apr - Tamilnad Mercantile Bank Limited has informed about Schedule of meet 30 Apr - Tamilnad Mercantile Bank Limited has informed about Schedule of meet
5
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
29 Apr - Tamilnad Mercantile Bank Limited has informed about Schedule of meet 29 Apr - Tamilnad Mercantile Bank Limited has informed about Schedule of meet
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 ₹13842.29 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 9.59. 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 1.42%. 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]