Stock Performance and Market Comparison
The stock surged by 4.66% on the day, outperforming the Sensex which rose by a modest 0.55%. It also outpaced its sector by 4.08%, touching an intraday high of Rs.660, marking a new 52-week and all-time peak. Tamilnad Mercantile Bank Ltd is trading above all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day, signalling strong technical momentum.
Over various time frames, the stock has demonstrated remarkable resilience and growth. Its one-week gain stands at 12.29% compared to the Sensex’s 2.90%, while the one-month performance is an impressive 16.37% against the Sensex’s 0.55%. The three-month return of 29.94% dwarfs the Sensex’s 0.99%, and the one-year performance is particularly notable at 50.99%, significantly higher than the Sensex’s 7.93%. Year-to-date, the stock has appreciated by 28.90%, contrasting with the Sensex’s decline of 1.39%. Over three years, Tamilnad Mercantile Bank Ltd has delivered a 45.43% return, outperforming the Sensex’s 38.21% during the same period.
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Financial Strength and Quality Metrics
Tamilnad Mercantile Bank Ltd’s financial health is underscored by a high Capital Adequacy Ratio of 24.31%, indicating substantial buffers against risk-weighted assets. This robust capital position supports the bank’s stability and capacity to absorb potential losses.
Recent quarterly results for December 2025 reveal a Gross Non-Performing Assets (NPA) ratio at a low 0.91%, reflecting effective asset quality management. The bank’s Credit Deposit Ratio for the half-year period stands at a strong 88.94%, signalling efficient utilisation of deposits for lending activities. Interest earned in the quarter reached a peak of Rs.1,469.41 crores, marking the highest level recorded.
Return on Assets (ROA) is reported at 1.8%, a figure that highlights the bank’s ability to generate profits from its asset base. The stock’s valuation remains attractive with a Price to Book Value ratio of 1, indicating fair pricing relative to its net asset value. Over the past year, profits have increased by 9.8%, while the Price/Earnings to Growth (PEG) ratio stands at 0.8, suggesting the stock is reasonably valued in relation to its earnings growth.
Market Capitalisation and Mojo Ratings
The company holds a Market Cap Grade of 3, reflecting its mid-tier market capitalisation within the private sector banking industry. The Mojo Score for Tamilnad Mercantile Bank Ltd is 74.0, with a recent upgrade in Mojo Grade from Hold to Buy on 06 Feb 2026, signalling improved confidence in the stock’s fundamentals and market standing.
These ratings are part of MarketsMOJO’s comprehensive analysis framework, which integrates financial health, valuation, and technical indicators to assess stock quality.
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Comparative Market Returns and Risk Considerations
Over the last year, Tamilnad Mercantile Bank Ltd has generated a return of 50.99%, substantially outperforming the broader BSE500 index return of 8.95%. This market-beating performance highlights the stock’s strong momentum within the private sector banking space.
However, it is notable that domestic mutual funds currently hold no stake in the company. Given their capacity for detailed research and due diligence, this absence may reflect a cautious stance regarding the stock’s valuation or business profile despite its strong recent performance.
Summary of the Stock’s Journey to the All-Time High
The ascent to Rs.660 represents the culmination of sustained financial discipline, prudent capital management, and consistent earnings growth. The bank’s ability to maintain low NPAs, high credit utilisation, and robust interest income has underpinned investor confidence and market recognition. The upgrade in Mojo Grade to Buy further validates the stock’s improved fundamentals and technical strength.
Trading above all major moving averages, Tamilnad Mercantile Bank Ltd’s stock price reflects a positive trend that has been maintained over multiple time horizons, from short-term rallies to long-term appreciation.
Conclusion
Tamilnad Mercantile Bank Ltd’s achievement of an all-time high price of Rs.660 on 09 Feb 2026 marks a significant milestone in its market journey. Supported by strong capital adequacy, attractive valuation metrics, and superior returns relative to benchmarks, the stock’s performance exemplifies resilience and quality within the private sector banking industry.
While the absence of domestic mutual fund holdings introduces a note of caution, the overall financial and market data present a compelling picture of a bank that has steadily strengthened its position and delivered value to shareholders.
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