ScoreWhy is Tamilnad Mercantile Bank Ltd ?
1
The Bank has a high Capital Adequacy Ratio of 26.80% signifying high buffers against its risk based assets
2
With a growth in Operating Profit of 16.99%, the company declared Very Positive results in Jun 26
- The company has declared positive results for the last 4 consecutive quarters
- GROSS NPA(Q) Lowest at 0.69%
- NII(Q) Highest at Rs 765.08 cr
- INTEREST EARNED(Q) Highest at Rs 1,662.43 cr
3
With ROA of 1.8, it has a Attractive valuation with a 1.3 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 94.18%, its profits have risen by 20.3% ; the PEG ratio of the company is 0.5
4
Increasing Participation by Institutional Investors
- Institutional investors have increased their stake by 0.58% over the previous quarter and collectively hold 8.68% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
5
Market Beating performance in long term as well as near term
- Along with generating 94.18% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to T N Merc. Bank should be less than 10%
- Overall Portfolio exposure to Private Sector Bank should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Private Sector Bank)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is T N Merc. Bank for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
T N Merc. Bank
94.04%
2.53
37.10%
Sensex
-2.43%
-0.18
13.58%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
7.81%
Net Profit Growth (5y)
14.01%
Advance to Deposit
81.45%
Capital Adequacy Ratio (Tier 1)
26.80%
Gross NPA (latest)
0.69%
Gross NPA (avg)
1.32%
Coverage Ratio (avg)
61.55%
Cost to Income (avg)
44.16%
Net Interest Margin (avg)
4.00%
Operating Profit to Assets (avg)
5.14%
ROA (avg)
1.76%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Price to Book Value
1.29
PEG Ratio
0.47
Dividend Yield
1.45%
ROE (Latest)
13.67%
ROA (Latest)
1.81%
Net NPA to Book Value
0.93
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend28What is working for the Company
GROSS NPA(Q)
Lowest at 0.69%
NII(Q)
Highest at Rs 765.08 cr
INTEREST EARNED(Q)
Highest at Rs 1,662.43 cr
PBDIT(Q)
Highest at Rs 372.71 cr.
PAT(Q)
Highest at Rs 411.51 cr.
NET NPA(Q)
Lowest at 0.17%
DPS(Y)
Highest at Rs 12.50
DPR(Y)
Highest at 14.80%
OPERATING PROFIT TO NET SALES(Q)
Highest at 22.42%
PBT LESS OI(Q)
Highest at Rs 318.78 cr.
EPS(Q)
Highest at Rs 25.99
-2What is not working for the Company
NON-OPERATING INCOME(Q)
is 42.78 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for T N Merc. Bank
Gross NPA - Quarterly
Lowest at 0.69% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Net Interest Income (Quarterly)
Highest at Rs 765.08 cr and Grown
each quarter in the last five quartersMOJO Watch
The bank's income from core business is increasing
Net Interest Income (Rs Cr)
Interest Earned - Quarterly
Highest at Rs 1,662.43 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Interest Earned (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 372.71 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 411.51 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net NPA - Quarterly
Lowest at 0.17% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Operating Profit Margin - Quarterly
Highest at 22.42%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 318.78 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 318.78 cr has Grown at 37.2% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 232.38 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 411.51 cr has Grown at 23.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 334.39 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 25.99
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Dividend per Share (DPS) - Annually
Highest at Rs 12.50
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
Dividend Payout Ratio (DPR) - Annually
Highest at 14.80%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for T N Merc. Bank
Non Operating Income - Quarterly
is 42.78 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
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