Tamilnad Mercantile Bank Limited (IN:TMB)
:TMB
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Tamilnad Mercantile Bank Limited
(TMB)
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Rating:81Outperform
Price Target:
₹771.00
▲(76.21% Upside)
Action:Reiterated
Date:04/29/26
The score is driven primarily by strong fundamentals (rising profits, low leverage, and growing equity), supported by a clear bullish technical trend. Attractive valuation (low P/E) further boosts the score, while cash flow volatility is the main offset.
Positive Factors
Improving Profitability
Sustained net income growth to 13.4B with healthy 18–22% margins signals durable earnings from core lending and fee activities. Consistent profitability supports internal capital accumulation, steadier ROE (~13–15%) and the bank's ability to finance growth and shareholder distributions over the medium term.
Negative Factors
Volatile Cash Generation
Historic swings in operating and free cash flow, including sizable negatives in earlier years, create uncertainty about consistency of internal funding. Persistent volatility can force reliance on wholesale funding or capex cuts during stress, raising execution risk for multi-quarter plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability
Sustained net income growth to 13.4B with healthy 18–22% margins signals durable earnings from core lending and fee activities. Consistent profitability supports internal capital accumulation, steadier ROE (~13–15%) and the bank's ability to finance growth and shareholder distributions over the medium term.
Read all positive factors
Tamilnad Mercantile Bank Limited (TMB) vs. iShares MSCI India ETF (INDA)
Market Cap
₹108.13B
Dividend Yield2.15%
Average Volume (3M)14.43K
Price to Earnings (P/E)6.1
Beta (1Y)0.69
Revenue Growth9.03%
EPS Growth13.11%
CountryIN
Employees4,601
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)76.70
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 provides banking and financial products and services in India. It operates through Treasury, Corporate and Wholesale Banking, Retail Banking, and Other Banking Operations segments. The company offers savings, recur...
How the Company Makes Money
TMB primarily makes money through a banking spread-and-fee model. (1) Net interest income: The bank earns interest income by lending funds (e.g., retail, MSME, corporate, and other advances) and investing in interest-bearing assets (such as securi...
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 | 63.00B | 66.96B | 61.41B | 54.93B | 47.10B | 46.46B |
| Gross Profit | 31.23B | 33.56B | 31.51B | 27.96B | 27.23B | 26.27B |
| EBITDA | 16.28B | 18.99B | 16.61B | 14.69B | 10.83B | 8.55B |
| Net Income | 12.15B | 13.38B | 11.83B | 10.72B | 10.29B | 8.22B |
Balance Sheet | ||||||
| Total Assets | 690.42B | 753.00B | 664.50B | 615.52B | 578.95B | 528.58B |
| Cash, Cash Equivalents and Short-Term Investments | 34.50B | 42.15B | 44.08B | 35.68B | 35.82B | 38.52B |
| Total Debt | 12.84B | 7.00B | 5.00B | 5.00B | 5.25B | 0.00 |
| Total Liabilities | 595.98B | 651.89B | 574.41B | 536.31B | 509.67B | 475.23B |
| Stockholders Equity | 94.44B | 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 Technical Analysis
Positive
437.55
Price Trends
657.76
Positive
630.30
Positive
545.58
Positive
Market Momentum
4.09
Positive
49.64
Neutral
45.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TMB, the sentiment is Positive. The current price of 437.55 is below the 20-day moving average (MA) of 702.68, below the 50-day MA of 657.76, and below the 200-day MA of 545.58, indicating a neutral trend. The MACD of 4.09 indicates Positive momentum. The RSI at 49.64 is Neutral, neither overbought nor oversold. The STOCH value of 45.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TMB.
Tamilnad Mercantile Bank Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ₹108.13B | 6.14 | ― | 2.15% | 9.03% | 13.11% | |
76 Outperform | ₹106.54B | 5.48 | ― | 1.05% | 4.88% | 11.75% | |
69 Neutral | ₹100.03B | 5.16 | ― | 2.42% | 0.37% | 2.88% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | ₹58.32B | 6.53 | ― | 0.76% | 14.38% | 17.18% | |
61 Neutral | ₹62.72B | 7.33 | ― | ― | 24.35% | 6.65% | |
46 Neutral | ₹23.47B | -1.22 | ― | 2.82% | -12.72% | -4281.86% |
* Financial Sector Average
IN:TMB
Tamilnad Mercantile Bank Limited
682.85
242.79
55.17%
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181.15
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42.46%
IN:UTKARSHBNK
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-6.70
-33.69%
Tamilnad Mercantile Bank Limited Corporate Events
Tamilnad Mercantile Bank Faces Rs. 2.04 Billion Tax Demand, Plans Appeal
Mar 18, 2026
Tamilnad Mercantile Bank has disclosed that the Assessment Unit of the Income Tax Department has raised a tax demand of Rs. 2.04 billion under Section 156 of the Income Tax Act. The demand follows an order under sections 147 read with 254 and 144B...
Tamilnad Mercantile Bank to Open New Branch in Coimbatore District
Mar 17, 2026
Tamilnad Mercantile Bank Limited, a listed private sector lender with a strong presence in Tamil Nadu, continues to expand its branch network as part of its regional growth strategy. The bank provides a range of retail and commercial banking servi...
Tamilnad Mercantile Bank Schedules Analyst Meet With 360 ONE Asset Management
Mar 11, 2026
Tamilnad Mercantile Bank has notified the stock exchanges that its representatives will hold a virtual meeting with 360 ONE Asset Management Limited on March 17, 2026, at 3:30 p.m., as part of its ongoing engagement with analysts and investors. Th...
Tamilnad Mercantile Bank to Join Virtual Bharat Connect Investor Conference
Mar 5, 2026
Tamilnad Mercantile Bank Limited has announced that its representatives will participate in a virtual analyst and investor interaction at the Bharat Connect Conference organized by Arihant Capital on March 10, 2026, at 11:00 A.M. The bank has clar...
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.