Tamilnad Mercantile Bank Limited (TMB) AI Stock Analysis

• Market Cap: ₹67.75B
• Dividend Yield: 2.57%
• Average Volume (3M): 4.50K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.50
• 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: 3,718
• 30 Day Avg. Volume: 4,498
• 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: ₹499.00
• Price Target Upside: 14.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ₹499.00 ▲(14.04% Upside)

Tamilnad Mercantile Bank Limited is well-positioned with strong financial performance and attractive valuation. The technical indicators suggest a positive trend, though not overly bullish. The lack of earnings call and corporate events data limits further insights, but the overall outlook remains positive.

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, recurring, term deposit, and current accounts; debit and credit cards; and demat and equity trading account, POS terminal, e-tax payment, online bill payment, mutual fund, insurance, mutual fund, sovereign gold bond scheme, money transfer, forex, treasury, and Internet and mobile banking services. It also provides home, car, two-wheeler, personal, house rent, pension, doctor, education, jewel, pension, NRI, commercial vehicle, traders and service, MSME, rice and dhall mill, doctor, and Mahalir loans, as well as loans against properties and sovereign gold bonds; vehicle finance for educational institutions; secured overdraft facilities; and microenterprise, pharma, and channel finance. The company was formerly known as The Nadar Bank Ltd. and changed its name to Tamilnad Mercantile Bank Limited on November 26, 1962. Tamilnad Mercantile Bank Limited was incorporated in 1921 and is headquartered in Thoothukudi, India.

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 profitability growth, supported by a stable and low-leverage balance sheet. While there are fluctuations in cash flow, overall cash management has improved, indicating robust financial health.

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	62.44B	61.42B	54.93B	47.10B	46.46B	42.53B
Gross Profit	31.61B	31.51B	27.96B	27.23B	26.38B	21.82B
EBITDA	15.95B	16.61B	14.69B	10.83B	8.55B	6.32B
Net Income	12.00B	11.83B	10.72B	10.29B	8.22B	6.03B
Balance Sheet
Total Assets	674.78B	664.50B	615.52B	578.95B	528.58B	475.27B
Cash, Cash Equivalents and Short-Term Investments	40.91B	44.08B	35.68B	35.82B	38.52B	12.85B
Total Debt	5.35B	5.00B	5.00B	5.25B	892.00K	820.00K
Total Liabilities	581.50B	574.41B	536.31B	509.67B	475.23B	429.47B
Stockholders Equity	93.28B	90.09B	79.21B	69.28B	53.36B	45.80B
Cash Flow
Free Cash Flow	0.00	16.45B	-7.11B	-13.59B	12.18B	-7.08B
Operating Cash Flow	0.00	17.50B	-6.11B	-12.70B	13.25B	-6.70B
Investing Cash Flow	0.00	-992.10M	-1.00B	-886.00M	-1.07B	-371.11M
Financing Cash Flow	0.00	-9.60B	6.97B	39.22B	38.91B	38.21B

Tamilnad Mercantile Bank Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 437.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 above the 20-day moving average (MA) of 429.22, above the 50-day MA of 428.49, and above the 200-day MA of 428.41, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 60.35 is Neutral, neither overbought nor oversold. The STOCH value of 50.40 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMB	78 Outperform	₹67.75B	5.64	―	2.57%	9.84%	9.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SOUTHBANK	67 Neutral	₹86.20B	6.35	―	1.22%	8.09%	2.68%
UTKARSHBNK	46 Neutral	₹32.08B	101.76	―	2.35%	12.40%	-166.78%