Tamilnad Mercantile Bank Downgraded to 'Sell' by MarketsMOJO on Technical Deterioration.

Tamilnad Mercantile Bank, a midcap private bank, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-03-18. This is due to the stock being in a bearish range and its technical trend deteriorating from mildly bearish to bearish on 13-Mar-24. The stock has also underperformed the market in the last year, with a return of only 9.80% compared to the market's 36.79%.
One factor that may have contributed to this downgrade is the low stake held by domestic mutual funds in the company, at only 0.08%. This could indicate that they are not comfortable with the stock's current price or the company's business.

However, there are also positive factors to consider. Tamilnad Mercantile Bank has a high Capital Adequacy Ratio of 22.53%, indicating strong buffers against risk. Its net profit has also shown healthy long-term growth, with an annual rate of 51.60%.

In addition, the company has recently declared positive results after two consecutive negative quarters. Its credit deposit ratio and interest earned are also at their highest levels, at 81.45% and Rs 1,229.15 crore respectively. With a ROA of 1.8, the stock is also trading at a very attractive valuation with a 1 price to book value.

Overall, while the stock may have been downgraded to a 'Sell', it is important to consider all factors before making any investment decisions. Investors should do their own research and analysis before making any decisions.