Tamilnad Mercantile Bank Limited (TMB) AI Stock Analysis

Tamilnad Mercantile Bank Limited

(NSE:TMB)

Select Model

Rating:73.6Outperform

Price Target:INR 885.00▲(10.48% Upside)

Action:reiterated

Date:10/29/26

Strong financial performance and attractive valuation are the main positives, led by balance-sheet strength, growth, and low leverage. Weak short-term technical momentum and inconsistent cash flow reduce the score.

Positive Factors

Improving profitabilitySustained 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 conversionThe 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.

Tamilnad Mercantile Bank Limited (TMB) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 126.89B
Dividend Yield: 1.56%
Average Volume (3M): 8,968
Price to Earnings (P/E): 8.0
Beta (1Y): 0.78
Revenue Growth: 17.61%
EPS Growth: 29.91%
Country: India
Employees: 4,786
Sector: General
Sector Strength: 55
Industry: Banks - Regional

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 various O...

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/smal...

Tamilnad Mercantile Bank Limited Financial Statement Overview

Summary

Strong revenue and profit growth, expanding assets and equity, low leverage, and consistently solid ROE support a high score. Volatile operating cash flow and the latest free cash flow decline are the primary weaknesses.

Income Statement

85Very Positive

Balance Sheet

92Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	74.11B	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	21.36B	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	36.19B	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	14.78B	16.45B	-7.11B	-13.59B	12.18B
Operating Cash Flow	0	16.07B	17.50B	-6.11B	-12.70B	13.25B
Investing Cash Flow	0	-98.49B	-992.10M	-1.00B	-886.00M	-1.07B
Financing Cash Flow	0	80.49B	-9.60B	6.97B	39.22B	38.91B

Tamilnad Mercantile Bank Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price801.05

Price Trends

50DMA876.71Negative

100DMA840.46Negative

200DMA739.98Positive

Market Momentum

MACD-21.32Positive

RSI36.14Neutral

STOCH26.50Neutral

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 801.05 is below the 20-day moving average (MA) of 847.92, below the 50-day MA of 876.71, and above the 200-day MA of 739.98, indicating a neutral trend. The MACD of -21.32 indicates Positive momentum. The RSI at 36.14 is Neutral, neither overbought nor oversold. The STOCH value of 26.50 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:TMB against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SOUTHBANK	81Outperform	INR 145.43B	9.16	―	0.81%	4.71%	16.69%
IN:CUB	74Outperform	INR 212.77B	12.32	―	0.93%	21.67%	23.04%
IN:KARURVYSYA	74Outperform	INR 340.16B	11.63	―	0.74%	13.55%	40.51%
IN:TMB	74Outperform	INR 126.85B	8.04	―	1.56%	17.61%	29.91%
IN:CSBBANK	70Outperform	INR 51.44B	7.47	―	―	15.66%	10.63%
IN:KTKBANK	67Neutral	INR 113.14B	7.26	―	1.67%	3.34%	35.29%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:TMB and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:TMB	Tamilnad Mercantile Bank Limited	801.05	312.05	63.81%
IN:CSBBANK	CSB Bank Ltd.	296.50	-112.25	-27.46%
IN:CUB	City Union Bank Limited	214.75	39.47	22.51%
IN:KARURVYSYA	Karur Vysya Bank Ltd.	352.00	101.70	40.63%
IN:KTKBANK	Karnataka Bank Ltd.	299.00	123.43	70.31%
IN:SOUTHBANK	South Indian Bank Limited	55.52	18.32	49.23%

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 banking...

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, si...

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 fo...

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 management’s...

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.

Date of analysis: Oct 29, 2026

Tamilnad Mercantile Bank Limited AI Stock Analysis