ScoreWhy is Tamilnad Mercantile Bank Ltd ?
1
Flat results in Dec 24
- NON-OPERATING INCOME(Q) is 46.71 % of Profit Before Tax (PBT)
2
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 07-Apr-25 and has generated 1.58% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band, KST and OBV
3
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
4
Underperformed the market in the last 1 year
- Even though the market (BSE 500) generated negative returns of -0.87% in the last 1 year, its fall in the stock was much higher with a return of -15.22%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Bank - Private)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is T N Merc. Bank for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
T N Merc. Bank
-15.29%
-0.83
18.42%
SENSEX
0.45%
0.04
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
7.12%
Net Profit Growth (5y)
6.78%
Advance to Deposit
78.54%
Capital Adequacy Ratio (Tier 1)
23.26%
Gross NPA (latest)
1.32%
Gross NPA (avg)
1.95%
Coverage Ratio (avg)
55.41%
Cost to Income (avg)
43.88%
Net Interest Margin (avg)
3.94%
Operating Profit to Assets (avg)
5.00%
ROA (avg)
1.83%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
6
Price to Book Value
0.78
PEG Ratio
0.86
Dividend Yield
NA
ROE (Latest)
13.57%
ROA (Latest)
1.90%
Net NPA to Book Value
2.11
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
GROSS NPA(Q)
Lowest at 1.32%
NET NPA(Q)
Lowest at 0.41%
PBT LESS OI(Q)
At Rs 215.52 cr has Grown at 21.2% (vs previous 4Q average
-3What is not working for the Company
NON-OPERATING INCOME(Q)
is 46.71 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for T N Merc. Bank
Gross NPA - Quarterly
Lowest at 1.32%
in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Net NPA - Quarterly
Lowest at 0.41% and Fallen
each quarter in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 215.52 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 215.52 cr has Grown at 21.2% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 177.86 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for T N Merc. Bank
Non Operating Income - Quarterly
is 46.71 % 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
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