Tamilnad Mercantile Bank Ltd (TMB) — share price & stock analysis

Market cap

₹11,564 Cr

P/BV

1.14×

ROE

14.0%

vs own history (since 2022)

67th pctile

Book value / share

₹638

EPS (TTM)

₹83.9

10-yr median P/BV

1×

Revenue (FY26)

₹5,819 Cr

Profit after tax (FY26)

₹1,338 Cr

Weinstein stage

Stage 2 (34 weeks)

Data as of

1 July 2026

4 of the 4 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROE 14% — respectable; GNPA 0.7% — clean book; the spread is mid-band vs its own history. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, lending and bad loans count double, and a quarter of the score comes from our earnings-recovery lens (is the profit cycle turning up off its trough?).

The price is tracking the earnings — no froth, no gift

Since Oct 2022, the stock is up 44% and earnings per share are up 46% — the price has tracked the profits, not run ahead of them.pricettm_eps

The market is paying for delivery, not promises. What you see in earnings is what you get in the price.

Today’s P/BV of 1.1× is the middle of its own range against its own history since 2022 (67th percentile) — neither a bargain nor a stretch, by its own standards.pb_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/BV — what the market pays per rupee of book value; the dotted line is its long-run median (1×).

An uptrend that has held for 34 weeks

Every stock cycles through the same four seasons — a flat base (stage 1), an advance (2), a top (3), a decline (4). Right now this one is in Stage 2: advancing, 34 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹616 today) — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 41 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

8 of the last 8 years ended with profits higher — quiet, steady compounding

Over 8 years, income went from ₹3,250 Cr to ₹5,819 Cr (about 8% a year), and profit from ₹222 Cr to ₹1,338 Cr.revenuenet_profit

Margins widened 6.2 points along the way — growth with improving economics.revenue−interest_expense

The loan book is working — interest income grew 16%

Mar 26 income was ₹1,550 Cr, up 16% on a year ago. A bank grows by lending more and charging well — this line is both together.revenue

The squeeze is easing — the spread bottomed at 42% and is mending

Of every ₹100 of interest the bank earns, ₹55 goes straight out as interest on deposits and borrowings. It keeps ₹45 — up 3 points from a year ago.revenueinterest_expense

The visible arc: squeezed from 45% down to 42% (Jun 25) as deposits repriced faster than loans, and recovering since. The direction matters more than the level now.interest_expense

Bad loans are healing — from a worst of 1.7% (Sep 23) to 0.7%

₹0.7 of every ₹100 lent is currently stuck with borrowers who’ve stopped paying — down from ₹1.7 at the Sep 23 worst. After the money already set aside, the true exposure is 0.2%.gross_npa_pctnet_npa_pct

Falling bad loans still help — less new money needs setting aside — but this year’s profit growth is coming from the lending engine itself (interest income), not from provision releases. The healing cleans the book; the growth is earned.gross_npa_pctrevenue

Profit jumped 28% year on year

Mar 26 profit was ₹374 Cr, up 28% on last year — earnings per share of ₹23.60.net_profiteps

Where the growth comes from matters: this year it is the lending engine — net interest income — doing the lifting, not one-off provision releases. That is the more durable kind.revenue

Priced mid-range against its own history

Today you pay ₹1.14 for every ₹1 of book value, against a long-run median of ₹1.00. It has traded cheaper than this only 67% of the time since 2022.pb_ratio

The numbers earn a deeper study — and watch the one thing that matters

The numbers lean positive, and the price is roughly fair to the delivery so far.

Best thing in the data: bad loans improving (1.3% → 0.7%).gross_npa_pct

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data