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Tamilnad Mercantile Bank Limited
(TMB)
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Rating:65Neutral
Price Target:
₹851.00
▼(-0.78% Downside)
Action:Downgraded
Date:10/29/26
The score is driven primarily by strong financial performance (rising earnings, low leverage, and expanding equity), supported by attractive valuation (low P/E). These positives are meaningfully offset by weak technicals (price below key moving averages and negative MACD) and volatility in historical cash flows, which reduces confidence in near-term momentum and cash consistency.
Positive Factors
Improving profitability
Sustained improvement in net income alongside consistently healthy margins indicates that TMB is converting its banking revenue into earnings effectively. This strengthens internal capital generation and provides a durable foundation for investing in branches, digital channels, lending growth, and customer services.
Negative Factors
Uneven cash conversion
The sharp swings in operating and free cash flow make internally generated cash less predictable than reported earnings. Although recent cash flow was positive, inconsistent conversion can constrain capital allocation visibility and make it harder to distinguish durable earnings growth from changes in banking working balances.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Sustained improvement in net income alongside consistently healthy margins indicates that TMB is converting its banking revenue into earnings effectively. This strengthens internal capital generation and provides a durable foundation for investing in branches, digital channels, lending growth, and customer services.
Read all positive factors
Tamilnad Mercantile Bank Limited (TMB) vs. iShares MSCI India ETF (INDA)
Market Cap
₹125.41B
Dividend Yield1.58%
Average Volume (3M)7.59K
Price to Earnings (P/E)8.7
Beta (1Y)0.79
Revenue Growth17.61%
EPS Growth29.91%
CountryIN
Employees4,786
SectorGeneral
Sector StrengthN/A
IndustryBanks - Regional
Share Statistics
EPS (TTM)99.65
Shares Outstanding158,351,460
10 Day Avg. Volume5,895
30 Day Avg. Volume7,590
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 | 63.64B | 66.96B | 61.41B | 54.93B | 47.10B | 46.46B |
| Gross Profit | 37.25B | 33.56B | 31.51B | 27.96B | 27.23B | 26.27B |
| EBITDA | 15.27B | 18.99B | 16.61B | 14.69B | 10.83B | 8.55B |
| Net Income | 15.78B | 13.38B | 11.83B | 10.72B | 10.29B | 8.22B |
Balance Sheet | ||||||
| Total Assets | 859.51B | 753.00B | 664.50B | 615.52B | 578.95B | 528.58B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 42.15B | 44.08B | 35.68B | 35.82B | 38.52B |
| Total Debt | 22.29B | 12.01B | 5.00B | 5.00B | 5.25B | 892.00K |
| Total Liabilities | 751.82B | 651.89B | 574.41B | 536.31B | 509.67B | 475.23B |
| Stockholders Equity | 107.69B | 101.10B | 90.09B | 79.21B | 69.28B | 53.36B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 14.78B | 16.45B | -7.11B | -13.59B | 12.18B |
| Operating Cash Flow | 0.00 | 16.07B | 17.50B | -6.11B | -12.70B | 13.25B |
| Investing Cash Flow | 0.00 | -98.49B | -992.10M | -1.00B | -886.00M | -1.07B |
| Financing Cash Flow | 0.00 | 80.49B | -9.60B | 6.97B | 39.22B | 38.91B |
Tamilnad Mercantile Bank Limited Technical Analysis
Negative
857.65
Price Trends
878.34
Negative
838.98
Negative
737.31
Positive
Market Momentum
-20.00
Positive
31.75
Neutral
29.68
Neutral
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 857.65 is above the 20-day moving average (MA) of 854.24, below the 50-day MA of 878.34, and above the 200-day MA of 737.31, indicating a neutral trend. The MACD of -20.00 indicates Positive momentum. The RSI at 31.75 is Neutral, neither overbought nor oversold. The STOCH value of 29.68 is Neutral, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ₹213.81B | 12.21 | ― | 0.93% | 21.67% | 23.04% | |
77 Outperform | ₹143.08B | 9.02 | ― | 0.82% | 4.71% | 16.69% | |
74 Outperform | ₹339.44B | 11.44 | ― | 0.74% | 13.55% | 40.51% | |
67 Neutral | ₹117.81B | 8.18 | ― | 1.60% | 3.34% | 35.29% | |
65 Neutral | ₹125.41B | 8.67 | ― | 1.58% | 17.61% | 29.91% | |
61 Neutral | ₹53.69B | 7.81 | ― | ― | 15.66% | 10.63% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:TMB
Tamilnad Mercantile Bank Limited
792.00
315.98
66.38%
IN:CSBBANK
CSB Bank Ltd.
309.45
-101.45
-24.69%
IN:CUB
City Union Bank Limited
215.80
40.92
23.40%
IN:KARURVYSYA
Karur Vysya Bank Ltd.
351.25
107.89
44.33%
IN:KTKBANK
Karnataka Bank Ltd.
311.35
134.50
76.06%
IN:SOUTHBANK
South Indian Bank Limited
54.62
17.70
47.95%
Tamilnad Mercantile Bank Limited Corporate Events
Tamilnad Mercantile Bank Reports Strong Q2 FY2027 Growth With Decade-Low GNPA
Oct 26, 2026
Tamilnad Mercantile Bank announced that its board has approved the unaudited financial results for the quarter and half year ended 30 September 2026, with management highlighting that Q2 FY2027 performance underscores the strength of its core bank...
Tamilnad Mercantile Bank posts strong growth in provisional Q2 FY27 business
Oct 1, 2026
Tamilnad Mercantile Bank reported provisional business figures for the quarter ended 30 September 2026, highlighting robust expansion across key metrics. Total business rose to ₹1,30,261 crore, driven by growth in both advances and deposits,...
Tamilnad Mercantile Bank to Open New Branch in Thiruvottiyur, Tamil Nadu
Aug 26, 2026
Tamilnad Mercantile Bank Limited has announced the opening of a new branch at Sannathi Street, Thiruvottiyur in Thiruvallur District, Tamil Nadu. The branch is scheduled to commence operations on 27 August 2026, expanding the bank’s physical...
Tamilnad Mercantile Bank Posts Q1 FY 2026-27 Earnings Call Transcript for Investors
Jul 30, 2026
Tamilnad Mercantile Bank Limited has notified stock exchanges that it has published the transcript of its earnings conference call discussing unaudited financial results for the quarter ended June 30, 2026. The document, reflecting management̵...
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.