Tamilnad Mercantile Bank Limited (TMB) AI Stock Analysis

• Market Cap: ₹67.98B
• Dividend Yield: 2.56%
• Average Volume (3M): 6.19K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.45
• Revenue Growth: 9.84%
• EPS Growth: 9.30%
• Country: IN
• Employees: 4,601
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 19.25
• Shares Outstanding: 158,351,460
• 10 Day Avg. Volume: 7,121
• 30 Day Avg. Volume: 6,188
• PEG Ratio: 0.54
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 4.02
• 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: ₹476.00
• Price Target Upside: 10.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ₹476.00 ▲(10.88% Upside)

Tamilnad Mercantile Bank Limited's strong financial performance and attractive valuation are significant strengths, suggesting potential for future growth. However, the current bearish technical indicators indicate caution in the short term. The absence of recent earnings call data and corporate events limits additional insights.

Tamilnad Mercantile Bank Limited Business Overview & Revenue Model

Company Description

Tamilnad Mercantile Bank Limited (TMB) is a prominent financial institution in India, headquartered in Thoothukudi, Tamil Nadu. It operates primarily in the banking sector, offering a diverse range of financial services to individuals, businesses, and institutions. The bank provides core banking products such as savings accounts, fixed deposits, loans, and credit facilities, along with digital banking services designed to meet the evolving needs of its customers.

How the Company Makes Money

Tamilnad Mercantile Bank Limited generates revenue primarily through its lending operations, where it earns interest from various loan products offered to retail and corporate clients. The bank also gains income from non-interest sources such as fees and commissions related to services like account maintenance, transaction processing, and financial advisory. Additionally, TMB benefits from strategic partnerships and collaborations with financial technology companies to enhance its digital offerings, thereby attracting more customers and increasing transaction volumes.

Tamilnad Mercantile Bank Limited Financial Statement Overview

Summary

Tamilnad Mercantile Bank Limited displays a strong financial performance with consistent revenue and net income growth, robust profit margins, and a stable balance sheet with low leverage. While cash flow shows some volatility, overall cash management has improved.

Income Statement

The income statement shows a strong performance with consistent revenue and net income growth over the years. The gross profit margin and net profit margin are robust, indicating efficient cost management and profitability. The bank has maintained a healthy EBIT and EBITDA margin, reflecting operational efficiency. Revenue growth has been steady, demonstrating the bank's ability to expand its business.

Balance Sheet

The balance sheet reflects a solid financial position with a substantial increase in stockholders' equity and total assets over the years. The debt-to-equity ratio is low, indicating prudent financial management and low leverage, which reduces financial risk. The equity ratio is strong, further highlighting the stability of the bank’s financial structure. However, the consistently high levels of cash and investments relative to debt suggest conservative capital allocation.

Cash Flow

The cash flow analysis reveals a mixed performance with some volatility in operating cash flow. However, the bank has shown significant improvement in free cash flow, indicating better capital management and increased cash generation from operations. The operating cash flow to net income ratio and free cash flow to net income ratio suggest robust cash flow relative to earnings, although fluctuations in past years warrant attention.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.90B	61.42B	27.96B	27.23B	26.38B	18.46B
Gross Profit	38.49B	31.51B	27.96B	27.23B	26.38B	18.46B
EBITDA	11.91B	16.61B	14.69B	10.83B	8.55B	4.38B
Net Income	11.83B	11.83B	10.72B	10.29B	8.22B	4.08B
Balance Sheet
Total Assets	664.50B	664.50B	615.52B	578.95B	528.58B	427.59B
Cash, Cash Equivalents and Short-Term Investments	44.08B	44.08B	35.68B	19.60B	21.02B	37.37B
Total Debt	5.00B	5.00B	5.00B	5.25B	892.00K	3.24B
Total Liabilities	574.41B	574.41B	536.31B	509.67B	475.23B	2.45B
Stockholders Equity	90.09B	90.09B	79.21B	69.28B	53.36B	39.80B
Cash Flow
Free Cash Flow	0.00	16.45B	-7.11B	-13.59B	12.18B	5.47B
Operating Cash Flow	0.00	17.50B	-6.11B	-12.70B	13.25B	5.67B
Investing Cash Flow	0.00	-992.10M	-1.00B	-886.00M	-1.07B	-201.79M
Financing Cash Flow	0.00	-9.60B	6.97B	10.88B	-712.56M	2.69B

Tamilnad Mercantile Bank Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 429.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TMB, the sentiment is Negative. The current price of 429.3 is below the 20-day moving average (MA) of 440.33, below the 50-day MA of 438.44, and below the 200-day MA of 432.86, indicating a bearish trend. The MACD of -1.39 indicates Positive momentum. The RSI at 39.01 is Neutral, neither overbought nor oversold. The STOCH value of 14.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TMB.

Tamilnad Mercantile Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMB	71 Outperform	₹67.98B	5.66		2.56%	9.84%	9.30%
Sector *	68 Neutral	$17.48B	11.72	10.44%	3.82%	10.01%	1.29%
SOUTHBANK	67 Neutral	₹78.13B	5.87		1.36%	10.26%	1.35%