Regulatory
HIGHTrigger: Management quantified the one-time impact from ECL transition and separately said the contingency provision covers the impact.
Monitor: regulatory
Tamilnad Mercantile Bank Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +16.7%Strong12w StreakAccelerating
In , Tamilnad Mercantile Bank Ltd (Banks - Private) is outperforming Nifty 500 with +16.7% relative strength. Fundamentals: Strong. On a 12-week streak.
Tamilnad Mercantile Bank Ltd Key Facts
- PE Ratio
- 8.8x
- Price/Book
- 1.03x
- Market Cap
- ₹11,712 Cr
- PAT Growth YoY
- +28%
- Revenue Growth YoY
- +16%
- RS vs Nifty 500
- +16.7%
Riding Wave
What's Happening
🌐FII stake increased 0.6% this quarter
🏦GNPA at 0.73% and improving — strong asset quality
💰Trading 56% below estimated fair value — significant discount
Key Risks
1. Regulatory
HIGHKey Numbers
PAT Growth YoY
+28%
Stable
Revenue YoY
+16%
Stable
GNPA
0.73%
Improving
Price to Book
1.2
PEG Ratio
0.51
Current Price
₹740
Dividend Yield
1.49%
Fundamental Score
68/100
Strong
3Y PAT CAGR
+9%
Market Cap
11.6K Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
What Are the Key Risks for Tamilnad Mercantile Bank Ltd?
Earnings deceleration risks from management commentary
What Is Tamilnad Mercantile Bank Ltd's Management Saying?
Key quotes from recent conference calls
“Impact of Expected Credit Loss (ECL) – w.e.f.01.04.2027 ₹279 crore additional provisions CRAR Impact up to 93 Bps It will be 18 Bps if phased over 5-years [Risk (regulatory): HIGH]”
How Fast Is Tamilnad Mercantile Bank Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +16% | +13% | Stable |
| PAT (Net Profit) | +28% | +9% | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.
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Frequently Asked Questions: Tamilnad Mercantile Bank Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Tamilnad Mercantile Bank Ltd's latest quarterly results?
Tamilnad Mercantile Bank Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +28.1% (stable)
- Revenue Growth YoY: +15.5%
- Net Interest Margin: 17.00%
- Gross NPA: 0.73%
Is Tamilnad Mercantile Bank Ltd's profit growing or declining?
Tamilnad Mercantile Bank Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +28.1% (latest quarter)
- PAT Growth QoQ: +9.4% (sequential)
- 3-Year PAT CAGR: +9.2%
- Trend: Stable — consistent growth pattern
What is Tamilnad Mercantile Bank Ltd's revenue growth trend?
Tamilnad Mercantile Bank Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +15.5%
- Revenue Growth QoQ: +5.5% (sequential)
- 3-Year Revenue CAGR: +12.6%
What is Tamilnad Mercantile Bank Ltd's asset quality trend?
Tamilnad Mercantile Bank Ltd's asset quality trend is improving.
- Gross NPA: 0.73%
- Net NPA: 0.18%
- GNPA Change YoY: -0.5% bps
What is Tamilnad Mercantile Bank Ltd's 3-year profit and revenue CAGR?
Tamilnad Mercantile Bank Ltd's long-term compounding rates
- 3-Year Profit CAGR: +9.2%
- 3-Year Revenue CAGR: +12.6%
Is Tamilnad Mercantile Bank Ltd's growth accelerating or decelerating?
Tamilnad Mercantile Bank Ltd's earnings growth is stable with strong momentum on a sequential basis.
- YoY Acceleration: +14.1% bps
- Sequential Acceleration: +1.9% bps
What is Tamilnad Mercantile Bank Ltd's trailing twelve month (TTM) performance?
Tamilnad Mercantile Bank Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹1,000 Cr
- TTM PAT Growth: +13.3% YoY
- TTM Revenue: ₹6,000 Cr
- TTM Revenue Growth: +10.0% YoY
Is Tamilnad Mercantile Bank Ltd overvalued or undervalued?
Tamilnad Mercantile Bank Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 8.8x
- Price-to-Book: 1.2x
What is Tamilnad Mercantile Bank Ltd's current PE ratio?
Tamilnad Mercantile Bank Ltd's current PE ratio is 8.8x.
- Current PE: 8.8x
- Market Cap: 11.7K Cr
- Dividend Yield: 1.49%
How does Tamilnad Mercantile Bank Ltd's valuation compare to its history?
Tamilnad Mercantile Bank Ltd's current PE is 8.8x.
- Current PE: 8.8x
- Valuation Assessment: Significantly Undervalued
What is Tamilnad Mercantile Bank Ltd's price-to-book ratio?
Tamilnad Mercantile Bank Ltd's price-to-book ratio is 1.2x.
- Price-to-Book (P/B): 1.2x
- Book Value per Share: ₹638
- Current Price: ₹740
Is Tamilnad Mercantile Bank Ltd a fundamentally strong company?
Tamilnad Mercantile Bank Ltd is rated Strong with a fundamental score of 68.06/100. This score is calculated from objective financial metrics
- PAT Growth YoY: +28.1% (20% weight)
- PAT Growth QoQ: +9.4% (15% weight)
- Earnings trend: stable (5% weight)
- Price-to-Book: 1.0x vs sector median (27.5% weight)
- PEG Ratio: 0.5x vs sector median (27.5% weight)
Is Tamilnad Mercantile Bank Ltd debt free?
Tamilnad Mercantile Bank Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹700 Cr
What is Tamilnad Mercantile Bank Ltd's return on equity (ROE) and ROCE?
Tamilnad Mercantile Bank Ltd's return ratios over recent years
- FY2024: ROE 14.0%
- FY2025: ROE 14.0%
- FY2026: ROE 14.0%
Is Tamilnad Mercantile Bank Ltd's cash flow positive?
Tamilnad Mercantile Bank Ltd's operating cash flow is negative (FY2026).
- Cash from Operations (CFO): ₹-101 Cr
- Free Cash Flow (FCF): ₹-219 Cr
- CFO/PAT Ratio: -8% (weak cash conversion)
What is Tamilnad Mercantile Bank Ltd's dividend yield?
Tamilnad Mercantile Bank Ltd's current dividend yield is 1.49%.
- Dividend Yield: 1.49%
- Current Price: ₹740
Who holds Tamilnad Mercantile Bank Ltd shares — promoters, FII, DII?
Tamilnad Mercantile Bank Ltd's shareholding pattern (Mar 2026)
- FII (Foreign): 6.2%
- DII (Domestic): 1.9%
- Public: 91.9%
Is promoter holding increasing or decreasing in Tamilnad Mercantile Bank Ltd?
Tamilnad Mercantile Bank Ltd's promoter holding is 0.0%.
- Current Promoter Holding: 0.0% (Mar 2026)
How long has Tamilnad Mercantile Bank Ltd been outperforming Nifty 500?
Tamilnad Mercantile Bank Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Is Tamilnad Mercantile Bank Ltd a new momentum entry or an established outperformer?
Tamilnad Mercantile Bank Ltd is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
What are the key risks in Tamilnad Mercantile Bank Ltd?
Tamilnad Mercantile Bank Ltd has 1 key risk worth monitoring
- [HIGH] Regulatory — Management quantified the one-time impact from ECL transition and separately said the contingency provision covers the impact.
What did Tamilnad Mercantile Bank Ltd's management say in the latest earnings call?
In Q4 FY26, Tamilnad Mercantile Bank Ltd's management highlighted
- "Impact of Expected Credit Loss (ECL) – w.e.f.01.04.2027 ₹279 crore additional provisions CRAR Impact up to 93 Bps It will be 18 Bps if phased over 5-y..."
Is Tamilnad Mercantile Bank Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Tamilnad Mercantile Bank Ltd may be worth studying
- Earnings growing at +28.1% YoY
- Valuation: appears significantly undervalued
What is the investment thesis for Tamilnad Mercantile Bank Ltd?
Tamilnad Mercantile Bank Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +15.5% YoY
- Appears significantly undervalued
Risk Factors (Bear Case)
- Key risk: Regulatory
What is the future outlook for Tamilnad Mercantile Bank Ltd?
Tamilnad Mercantile Bank Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Valuation: Significantly Undervalued
- Key Risk: Regulatory
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.