Tamilnad Mercantile Bank Ltd Hits New 52-Week High of Rs.693

Stock Performance and Market Context

The stock of Tamilnad Mercantile Bank Ltd (Stock ID: 1003695) recorded an intraday high of Rs.693 on 10 Feb 2026, representing a 4.53% increase on the day. This rise outperformed the private sector banking sector by 4.03%, underscoring the stock’s robust relative strength. Over the past two trading sessions, the stock has gained 9.32%, demonstrating sustained upward momentum.

Trading above all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — the stock’s technical positioning confirms a strong bullish trend. This technical strength is complemented by a Mojo Score of 74.0, which corresponds to a Buy grade, upgraded from Hold on 6 Feb 2026, reflecting improved market sentiment and fundamental outlook.

In comparison, the broader Sensex index opened 144.25 points higher on the same day, trading at 84,390.71, up 0.39%. The Sensex is currently 2.1% below its own 52-week high of 86,159.02 and has gained 3.5% over the past three weeks. Mega-cap stocks are leading the market rally, but Tamilnad Mercantile Bank’s outperformance within the private sector banking segment is particularly noteworthy.

Financial Metrics Underpinning the Rally

Tamilnad Mercantile Bank Ltd’s financial fundamentals have played a key role in supporting the stock’s upward trajectory. The bank boasts a high Capital Adequacy Ratio of 24.31%, indicating strong buffers against risk-weighted assets and a solid capital position relative to regulatory requirements.

Recent quarterly results for December 2025 reveal a Gross Non-Performing Assets (NPA) ratio of just 0.91%, one of the lowest in the sector, signalling asset quality strength. The bank’s credit deposit ratio for the half-year period stands at a robust 88.94%, reflecting effective utilisation of deposits for lending activities.

Interest earned during the quarter reached a record Rs.1,469.41 crores, underscoring the bank’s ability to generate income from its core operations. Return on Assets (ROA) is reported at 1.8%, a figure that highlights efficient asset utilisation and profitability.

Valuation metrics further support the stock’s appeal. Trading at a Price to Book Value of 1.1, Tamilnad Mercantile Bank Ltd is valued fairly relative to its peers’ historical averages. The company’s Price/Earnings to Growth (PEG) ratio stands at 0.9, indicating that earnings growth is favourably priced into the stock.

Over the past year, the stock has delivered a remarkable 60.86% return, significantly outpacing the Sensex’s 9.16% gain and the broader BSE500 index’s 10.77% return. Profit growth over the same period has been steady at 9.8%, reinforcing the bank’s consistent performance.

Market Capitalisation and Ownership

Despite its strong performance and market capitalisation grade of 3, Tamilnad Mercantile Bank Ltd remains relatively underrepresented in domestic mutual fund portfolios, with holdings reported at 0%. This limited institutional presence may reflect the bank’s mid-sized status within the private sector banking universe or differing investment mandates.

Nonetheless, the stock’s recent upgrade from Hold to Buy by MarketsMOJO on 6 Feb 2026, accompanied by a Mojo Score of 74.0, signals a positive reassessment of the company’s fundamentals and market positioning.

Technical Momentum and Market Positioning

The stock’s recent gains have been supported by strong technical momentum, with Tamilnad Mercantile Bank Ltd consistently trading above all major moving averages. This technical strength is a key factor in the stock’s ability to sustain its rally and reach new highs.

The broader market environment has also been conducive. The Sensex’s bullish trend, trading above its 50-day moving average and with the 50 DMA above the 200 DMA, provides a supportive backdrop for stocks like Tamilnad Mercantile Bank Ltd. The index’s three-week consecutive rise and mega-cap leadership have helped maintain positive investor sentiment across sectors.

From a risk perspective, the bank’s relatively modest presence in mutual fund portfolios may indicate a cautious stance among some institutional investors. However, the company’s strong capital position, asset quality, and consistent earnings growth provide a solid foundation for its current valuation and market performance.

Summary of Key Data Points

• New 52-week and all-time high price: Rs.693
• Day’s high increase: 4.53%
• Two-day consecutive gain: 9.32% total return
• Capital Adequacy Ratio: 24.31%
• Gross NPA (Q4 Dec 2025): 0.91%
• Credit Deposit Ratio (HY): 88.94%
• Interest Earned (Q4 Dec 2025): Rs.1,469.41 crores
• Return on Assets: 1.8%
• Price to Book Value: 1.1
• PEG Ratio: 0.9
• 1-Year Stock Return: 60.86% vs Sensex 9.16%
• Mojo Score: 74.0 (Buy, upgraded from Hold on 6 Feb 2026)

Conclusion

Tamilnad Mercantile Bank Ltd’s achievement of a new 52-week high at Rs.693 reflects a combination of strong financial fundamentals, positive technical momentum, and favourable market conditions. The stock’s outperformance relative to the sector and broader market indices highlights its resilience and growth trajectory within the private sector banking industry. With solid capital adequacy, low asset risk, and consistent earnings growth, the bank has established a firm foundation for its current market valuation and momentum.

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