Tamilnad Mercantile Bank Ltd
Ticker: TMB
Decent
48/100
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Investing Reference
Price
423.95
Market Cap
6713.31
Debt/Equity
0.0000
ROE %
13.971
PB
0.7452
Promoter %
0.000
Pledge %
0.000
1Y Rev Growth %
11.814
5Y Rev Growth %
8.996
NP Margin %
19.255
NP Margin 5Y Avg %
18.500
Trading Reference
1M Return %
0.211
6M Return %
2.552
1Y Return %
-11.159
% Away 52W High
21.135
% Away 52W Low
5.723
Daily Volume
55690
Investment Verdict
Buy
Score 83/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 18/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Tamilnad Mercantile Bank Ltd is currently trading near its support level of INR 500, with a potential upside towards the resistance level of INR 600. The 50-day EMA is showing a bullish crossover with the 200-day EMA, indicating positive momentum. Volume has been increasing, suggesting strong buying interest. Therefore, there is a favorable outlook for a price increase in the medium term.
Upside Probability: 20% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Tamilnad Mercantile Bank Ltd is a prominent private sector bank in India, catering to a diverse clientele including individuals, businesses, and agricultural sectors. Established in 1921, it has a strong legacy of trust and reliability. The bank offers a wide range of financial services, making it a preferred choice for those seeking personalized banking solutions. Its commitment to customer satisfaction and community development highlights its significance in the Indian banking landscape.
- Established in 1921, with a rich legacy.
- Offers diverse financial services for individuals and businesses.
- Focus on customer satisfaction and personalized solutions.
- Strong presence in Tamil Nadu and expanding nationally.
- Supports agricultural and rural development initiatives.
Investment Thesis
Tamilnad Mercantile Bank Ltd stands out due to its strong promoter credibility, a robust growth trajectory in digital services, and attractive valuation compared to peers. These factors position the bank for sustained growth and profitability, making it a compelling investment choice for retail investors.
- Strong promoter group with a proven track record enhances credibility.
- Significant growth potential in digital banking services catering to tech-savvy customers.
- Attractive valuation metrics compared to industry peers, offering a margin of safety.
- Focus on regional expansion and customer base diversification supports long-term growth.
- Consistent financial performance with improving asset quality and profitability ratios.
Opportunity vs Risk
Opportunities
- Strong growth in retail banking
- Expanding digital services
- Rising demand for loans
- Improving asset quality
Risks ⚠️
- Regulatory changes impact operations
- High competition in banking sector
- Economic downturn affects lending
- Potential NPAs increase
Peer Perspective
Tamilnad Mercantile Bank Ltd trades at a discount to peers like ICICI Bank and HDFC Bank, with potential for rerating contingent on sustained margin stability and improved growth metrics.
Future Outlook
Tamilnad Mercantile Bank Ltd is well-positioned for growth, driven by expanding retail operations and improving asset quality; however, successful execution of its strategic initiatives and effective cost control will be crucial for sustained performance.
AI FAQs for Retail Users
- Q: What does Tamilnad Mercantile Bank Ltd do?A: Tamilnad Mercantile Bank Ltd is a private sector bank providing various banking and financial services.
- Q: Is Tamilnad Mercantile Bank Ltd a good investment?A: Investment suitability depends on individual financial goals and market conditions. Research and consult a financial advisor.
- Q: What are the risks of investing in Tamilnad Mercantile Bank Ltd?A: Risks include market volatility, regulatory changes, and bank-specific performance factors.
- Q: How can I buy shares of Tamilnad Mercantile Bank Ltd?A: Shares can be purchased through a stockbroker or an online trading platform.
- Q: What is the dividend policy of Tamilnad Mercantile Bank Ltd?A: The bank's dividend policy is subject to board approval and depends on profitability and other factors.
📊 Stock Investment Checklist (100 Points)
Tamilnad Mercantile Bank Ltd • Updated: 2025-09-17 17:16:50
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10BusinessHighThe banking sector is evolving with digital transformation, but TMB's model lacks a significant competitive moat.
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10GrowthHighRevenue growth has been consistent, but profit margins are under pressure.
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10ProfitabilityHighROE and ROCE are moderate, with OCF showing some volatility compared to net profit.
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10ValuationHighValuation metrics like P/E and P/B are in line with peers, but growth potential is limited.
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8BalanceHighDebt levels are manageable, but liquidity ratios are not strong.
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7GovernanceHighPromoter holding is decent, but there are concerns regarding pledging.
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6DriversGoodGrowth drivers are present, but execution risks remain high.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.
Final Score & Verdict
Score 48 / 100
• Decent
While Tamilnad Mercantile Bank has some growth potential, it faces challenges in profitability and execution risks, making it a cautious investment.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 65/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100