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 8.19%, its profits have risen by 7.7% ; the PEG ratio of the company is 0.9
Real-Time Research ReportHow much should you hold?
- 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, Medium Return
Absolute
Risk Adjusted
Volatility
T N Merc. Bank
47.8%
0.43
19.16%
Sensex
-4.3%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
5.94%
Net Profit Growth (5y)
7.77%
Advance to Deposit
82.09%
Capital Adequacy Ratio (Tier 1)
24.31%
Gross NPA (latest)
0.91%
Gross NPA (avg)
1.74%
Coverage Ratio (avg)
60.00%
Cost to Income (avg)
44.45%
Net Interest Margin (avg)
3.90%
Operating Profit to Assets (avg)
4.96%
ROA (avg)
1.80%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Price to Book Value
1.01
PEG Ratio
0.80
Dividend Yield
1.76%
ROE (Latest)
12.85%
ROA (Latest)
1.78%
Net NPA to Book Value
1.02
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
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
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 0.91%
CREDIT DEPOSIT RATIO(HY)
Highest at 88.94%
INTEREST EARNED(Q)
Highest at Rs 1,469.41 cr
NET NPA(Q)
Lowest at 0.20%
NII(Q)
Highest at Rs 646.14 cr
PBDIT(Q)
Highest at Rs 272.22 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 18.53%
PBT LESS OI(Q)
Highest at Rs 270.73 cr.
PAT(Q)
Highest at Rs 341.50 cr.
EPS(Q)
Highest at Rs 21.57
-3What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 2,298.00 cr
NON-OPERATING INCOME(Q)
is 42.00 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for T N Merc. Bank
Gross NPA - Quarterly
Lowest at 0.91% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Interest Earned - Quarterly
Highest at Rs 1,469.41 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Interest Earned (Rs Cr)
Net NPA - Quarterly
Lowest at 0.20% 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 646.14 cr
in the last five quartersMOJO Watch
The bank's income from core business is increasing
Net Interest Income (Rs Cr)
Credit Deposit Ratio - Half Yearly
Highest at 88.94% and Grown
in the last four periodsMOJO Watch
Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets
Credit Deposit Ratio (%)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 272.22 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 18.53%
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 270.73 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 270.73 cr has Grown at 35.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 199.74 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 341.50 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 21.57
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 42.00 % 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
