ScoreWhy is Tamilnad Mercantile Bank Ltd ?
1
The Bank has a high Capital Adequacy Ratio of 25.68% signifying high buffers against its risk based assets
2
Positive results in Sep 25
- GROSS NPA(Q) Lowest at 0.00%
- NET NPA(Q) Lowest at 0.00%
- NII(Q) Highest at Rs 597.13 cr
3
With ROA of 1.8, it has a Very Attractive valuation with a 0.9 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 20.58%, its profits have risen by 7.7% ; the PEG ratio of the company is 0.9
4
Market Beating Performance
- The stock has generated a return of 20.58% in the last 1 year, much higher than market (BSE500) returns of 4.98%
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?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
T N Merc. Bank
20.92%
1.03
20.23%
Sensex
6.63%
0.59
11.31%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
4.87%
Net Profit Growth (5y)
9.45%
Advance to Deposit
79.67%
Capital Adequacy Ratio (Tier 1)
25.68%
Gross NPA (latest)
1.22%
Gross NPA (avg)
1.48%
Coverage Ratio (avg)
58.09%
Cost to Income (avg)
44.48%
Net Interest Margin (avg)
4.01%
Operating Profit to Assets (avg)
5.15%
ROA (avg)
1.74%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
7
Price to Book Value
0.90
PEG Ratio
0.91
Dividend Yield
2.04%
ROE (Latest)
12.86%
ROA (Latest)
1.76%
Net NPA to Book Value
NA
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
GROSS NPA(Q)
Lowest at 0.00%
NET NPA(Q)
Lowest at 0.00%
NII(Q)
Highest at Rs 597.13 cr
INTEREST EARNED(Q)
Highest at Rs 1,413.39 cr
PBDIT(Q)
Highest at Rs 244.36 cr.
PBT LESS OI(Q)
Highest at Rs 224.35 cr.
PAT(Q)
Highest at Rs 317.51 cr.
EPS(Q)
Highest at Rs 20.05
-2What is not working for the Company
NON-OPERATING INCOME(Q)
is 48.12 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for T N Merc. Bank
Gross NPA - Quarterly
Lowest at 0.00% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Net NPA - Quarterly
Lowest at 0.00% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Net Interest Income (Quarterly)
Highest at Rs 597.13 cr
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 1,413.39 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Interest Earned (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 244.36 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 224.35 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 224.35 cr has Grown at 20.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 186.85 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 317.51 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 20.05
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for T N Merc. Bank
Non Operating Income - Quarterly
is 48.12 % 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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