ScoreWhy is Tamilnad Mercantile Bank Ltd ?
1
The Bank has a high Capital Adequacy Ratio of 27.31% signifying high buffers against its risk based assets
2
The company has declared Positive results for the last 3 consecutive quarters
- GROSS NPA(Q) Lowest at 0.73%
- NII(Q) Highest at Rs 704.45 cr
- INTEREST EARNED(Q) Highest at Rs 1,550.38 cr
3
With ROA of 1.9, it has a Very Attractive valuation with a 1.1 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 56.62%, its profits have risen by 13.1% ; the PEG ratio of the company is 0.6
4
Increasing Participation by Institutional Investors
- Institutional investors have increased their stake by 0.69% over the previous quarter and collectively hold 8.1% 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 56.62% 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?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
T N Merc. Bank
56.62%
1.95
29.00%
Sensex
-2.41%
-0.18
13.42%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
7.72%
Net Profit Growth (5y)
9.13%
Advance to Deposit
78.69%
Capital Adequacy Ratio (Tier 1)
27.31%
Gross NPA (latest)
0.73%
Gross NPA (avg)
1.30%
Coverage Ratio (avg)
57.61%
Cost to Income (avg)
44.84%
Net Interest Margin (avg)
3.95%
Operating Profit to Assets (avg)
5.02%
ROA (avg)
1.77%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Price to Book Value
1.11
PEG Ratio
0.62
Dividend Yield
1.61%
ROE (Latest)
13.69%
ROA (Latest)
1.89%
Net NPA to Book Value
1.00
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Bullish
Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
GROSS NPA(Q)
Lowest at 0.73%
NII(Q)
Highest at Rs 704.45 cr
INTEREST EARNED(Q)
Highest at Rs 1,550.38 cr
PAT(Q)
Highest at Rs 373.65 cr.
NET NPA(Q)
Lowest at 0.18%
PBDIT(Q)
Highest at Rs 280.55 cr.
PBT LESS OI(Q)
At Rs 261.76 cr has Grown at 22.6% (vs previous 4Q average
EPS(Q)
Highest at Rs 23.60
-2What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 2,298.00 cr
NON-OPERATING INCOME(Q)
is 48.01 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for T N Merc. Bank
Gross NPA - Quarterly
Lowest at 0.73% 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 704.45 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 1,550.38 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Interest Earned (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 373.65 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 0.18% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 280.55 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
At Rs 261.76 cr has Grown at 22.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 213.54 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 23.60
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
CAR - Quarterly
Highest at 33.73%
in the last five quartersMOJO Watch
The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.
CAR (%)
Here's what is not working for T N Merc. Bank
Non Operating Income - Quarterly
is 48.01 % 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
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 2,298.00 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Non Operating Income - Quarterly
Highest at Rs 241.76 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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