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Tamilnad Mercantile Bank Limited
(TMB)
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Rating:81Outperform
Price Target:
₹1,031.00
▲(20.21% Upside)
Action:Reiterated
Date:07/28/26
Overall score is driven primarily by strong financial fundamentals (profitability, growing equity, low leverage), tempered by cash flow volatility. Technicals add support as the stock is in a clear uptrend versus key moving averages, while valuation is favorable with a low P/E and a modest dividend yield.
Positive Factors
Sustained Profitability
Net income and margins have improved steadily through the period, indicating durable earnings quality. Consistent net margins (~18–22%) and rising profits support internal capital formation and reinvestment capacity, strengthening the bank's ability to fund growth and absorb shocks over months.
Negative Factors
Volatile Cash Conversion History
Cash generation has swung materially across years, with notable negative operating/free cash flows in earlier periods. Such volatility reduces predictability of internally available funds for lending, capex or dividends and raises execution risk if cash conversion reverses again.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profitability
Net income and margins have improved steadily through the period, indicating durable earnings quality. Consistent net margins (~18–22%) and rising profits support internal capital formation and reinvestment capacity, strengthening the bank's ability to fund growth and absorb shocks over months.
Read all positive factors
Tamilnad Mercantile Bank Limited (TMB) vs. iShares MSCI India ETF (INDA)
Market Cap
₹134.21B
Dividend Yield1.49%
Average Volume (3M)14.43K
Price to Earnings (P/E)9.2
Beta (1Y)0.71
Revenue Growth11.78%
EPS Growth20.33%
CountryIN
Employees4,786
SectorGeneral
Sector StrengthN/A
IndustryBanks - Regional
Share Statistics
EPS (TTM)91.21
Shares Outstanding158,351,460
10 Day Avg. Volume9,091
30 Day Avg. Volume14,426
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)0.91
Price to Sales (P/S)1.37
P/FCF Ratio6.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Tamilnad Mercantile Bank Limited Business Overview & Revenue Model
Company Description
Tamilnad Mercantile Bank Limited is an Indian financial institution offering a diverse range of banking and financial solutions. Its operations are organized into key divisions: Treasury, Corporate and Wholesale Banking, Retail Banking, and variou...
How the Company Makes Money
TMB primarily makes money through (1) net interest income and (2) non-interest (fee and other) income. Net interest income is earned from the spread between interest received on earning assets—mainly loans and advances to retail customers, micro/s...
Tamilnad Mercantile Bank Limited Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 69.80B | 66.96B | 61.41B | 54.93B | 47.10B | 46.46B |
| Gross Profit | 35.04B | 33.56B | 31.51B | 27.96B | 27.23B | 26.27B |
| EBITDA | 20.02B | 18.99B | 16.61B | 14.69B | 10.83B | 8.55B |
| Net Income | 14.44B | 13.38B | 11.83B | 10.72B | 10.29B | 8.22B |
Balance Sheet | ||||||
| Total Assets | 797.86B | 753.00B | 664.50B | 615.52B | 578.95B | 528.58B |
| Cash, Cash Equivalents and Short-Term Investments | 40.73B | 42.15B | 44.08B | 35.68B | 35.82B | 38.52B |
| Total Debt | 15.40B | 7.00B | 5.00B | 5.00B | 5.25B | 892.00K |
| Total Liabilities | 692.24B | 651.89B | 574.41B | 536.31B | 509.67B | 475.23B |
| Stockholders Equity | 105.62B | 101.10B | 90.09B | 79.21B | 69.28B | 53.36B |
Cash Flow | ||||||
| Free Cash Flow | -33.09B | 14.78B | 16.45B | -7.11B | -13.59B | 12.18B |
| Operating Cash Flow | -32.68B | 16.07B | 17.50B | -6.11B | -12.70B | 13.25B |
| Investing Cash Flow | -319.60M | -98.49B | -992.10M | -1.00B | -886.00M | -1.07B |
| Financing Cash Flow | 23.41B | 80.49B | -9.60B | 6.97B | 39.22B | 38.91B |
Tamilnad Mercantile Bank Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ₹134.21B | 9.20 | ― | 1.41% | 11.78% | 20.33% | |
81 Outperform | ₹117.50B | 8.53 | ― | 1.75% | 0.90% | 23.31% | |
74 Outperform | ₹322.57B | 11.66 | ― | 0.77% | 15.05% | 36.88% | |
69 Neutral | ₹118.05B | 7.80 | ― | 0.86% | 2.83% | 13.45% | |
68 Neutral | ₹220.10B | 12.55 | ― | 1.19% | 18.39% | 20.21% | |
57 Neutral | ₹55.00B | 8.21 | ― | ― | 21.88% | 10.95% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:TMB
Tamilnad Mercantile Bank Limited
870.00
451.68
107.97%
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Tamilnad Mercantile Bank Limited Corporate Events
Tamilnad Mercantile Bank Sets Investor Call on Q1 FY27 Unaudited Results
Jul 13, 2026
Tamilnad Mercantile Bank Limited is an Indian private sector bank headquartered in Thoothukudi, Tamil Nadu, operating under the regulatory framework of SEBI listing norms. The bank focuses on commercial and retail banking services, and its shares ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.