Tamilnad Mercantile Bank Limited (TMB) AI Stock Analysis

• Market Cap: ₹80.32B
• Dividend Yield: 2.17%
• Average Volume (3M): 14.31K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.48
• Revenue Growth: 7.08%
• EPS Growth: 7.69%
• Country: IN
• Employees: 4,601
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 20.05
• Shares Outstanding: 158,351,460
• 10 Day Avg. Volume: 7,160
• 30 Day Avg. Volume: 14,308
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹552.00 ▲(26.16% Upside)

Tamilnad Mercantile Bank Limited's strong financial performance and attractive valuation are the primary drivers of its stock score. The technical analysis indicates bullish momentum, although overbought signals suggest caution. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Tamilnad Mercantile Bank's effective market strategies and ability to capture new business, supporting long-term expansion.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, reducing risk and providing the bank with flexibility to invest in growth opportunities.

Profitability

Sustained profitability and efficient cost management reflect operational strength, supporting long-term financial health and shareholder value.

Negative Factors

Cash Flow Volatility

Volatile cash flows can impact the bank's ability to consistently fund operations and investments, posing a risk to financial stability.

Cash Management

Inconsistent cash management may hinder the bank's ability to optimize capital allocation and respond to market opportunities effectively.

Capital Allocation

Conservative capital allocation may limit growth potential if the bank is overly cautious in deploying resources for expansion or innovation.

Tamilnad Mercantile Bank Limited Business Overview & Revenue Model

Company Description

Tamilnad Mercantile Bank Limited (TMB) is a private sector bank based in India, primarily serving the southern states. Established in 1921, TMB focuses on providing a wide range of banking and financial services, including retail banking, corporate banking, agricultural financing, and small and medium enterprise (SME) lending. The bank also offers various products such as savings accounts, fixed deposits, loans, and digital banking solutions, catering to both individual and business customers.

How the Company Makes Money

TMB generates revenue primarily through the interest income earned from lending activities. The bank extends various types of loans, including personal loans, home loans, agricultural loans, and business loans, which carry interest rates. Additionally, TMB earns money through fees and commissions charged for services such as account maintenance, fund transfers, and other financial products. The bank also benefits from investment income, which includes returns on investments in government securities and other financial instruments. Furthermore, TMB has established partnerships with various financial institutions and fintech companies to enhance its service offerings and reach a broader customer base, contributing to its overall revenue streams.

Tamilnad Mercantile Bank Limited Financial Statement Overview

Summary

Tamilnad Mercantile Bank Limited displays a strong financial performance with consistent revenue and net income growth. The balance sheet is solid with low leverage, and cash flow management has improved despite some volatility. Overall, the bank's financial health is robust, positioning it well for future growth and stability.

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	26.27B	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	27.05B
Total Debt	5.35B	5.00B	5.00B	5.25B	0.00	0.00
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: Positive
• 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 below the 20-day moving average (MA) of 502.63, below the 50-day MA of 464.12, and above the 200-day MA of 436.54, indicating a bullish trend. The MACD of 11.38 indicates Positive momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 66.81 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
SOUTHBANK	77 Outperform	₹96.03B	7.07	―	1.01%	8.09%	2.68%
TMB	74 Outperform	₹80.32B	6.61	―	2.17%	7.08%	7.69%
CSBBANK	73 Outperform	₹73.05B	11.76	―	―	32.90%	12.28%
DCBBANK	71 Outperform	₹51.24B	7.63	―	0.74%	21.44%	17.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UTKARSHBNK	45 Neutral	₹29.45B	―	―	2.54%	2.35%	-261.81%

Tamilnad Mercantile Bank Limited Corporate Events

Tamilnad Mercantile Bank Achieves Record Quarterly Profit Amid Strategic Expansion

Tamilnad Mercantile Bank Ltd reported its highest ever quarterly net profit for Q2FY26, driven by growth in core lending and deposits. The bank’s strategic initiatives, including opening nine new branches and forming digital transformation partnerships, aim to enhance customer experience and operational efficiency. With a year-on-year total business growth of 11.40% and a deposit increase of 12.32%, TMB continues to perform strongly across key financial metrics, maintaining the lowest GNPA in a decade at 1.01%.

Tamilnad Mercantile Bank Reports Strong Growth in Q2 2025

Tamilnad Mercantile Bank Limited reported a significant growth in its provisional business figures for the quarter and half-year ending September 30, 2025. The bank’s total business increased by 11.47% year-on-year, with advances growing by 10.49% and deposits by 12.32%. This growth reflects the bank’s strong operational performance and strategic market positioning, potentially benefiting stakeholders by enhancing shareholder value and market competitiveness.

Tamilnad Mercantile Bank Announces Trading Window Closure

Tamilnad Mercantile Bank Limited has announced the closure of its trading window in compliance with the SEBI regulations on insider trading. This closure will be in effect from October 1, 2025, until 48 hours after the announcement of the bank’s unaudited financial results for the quarter and half-year ending September 30, 2025. This move is part of the bank’s adherence to regulatory requirements and ensures transparency and fairness in trading activities.

Tamilnad Mercantile Bank Updates Articles of Association

Tamilnad Mercantile Bank Limited announced the outcome of its Board Meeting held on September 18, 2025, where several amendments to its Articles of Association were approved. These amendments include changes to the eligibility criteria for directors, adjustments to the sitting fees for directors, and updates to the procedures for sending notices to members. The changes are intended to align the bank’s operations with current regulatory standards and are subject to approval by the Reserve Bank of India and the bank’s shareholders.