Tamilnad Mercantile Bank Limited (TMB) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Tamilnad Mercantile Bank Limited stock ₹621, price ₹827, that is 25.0% below the price, quality 56 out of 100. Rating: overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.
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Tamilnad Mercantile Bank Limited
TMB · NSEOur calculation puts a fair price 25% below what the stock costs today.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
50‑month range ₹372.35 – ₹942.45 · fair‑value band ₹550.11 – ₹823.77 · the ₹827.40 price screens above the ₹620.95 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Company profile
Tamilnad Mercantile Bank Limited provides banking and financial products and services in India. It operates through the Treasury, Corporate and Wholesale Banking, Retail Banking, and Other Banking Operations segments.
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The company offers savings, fixed, recurring, term deposit, and current accounts; debit and credit cards; and demat and equity trading accounts, mutual fund, insurance, portfolio management, online bill payment, sovereign gold bond scheme, forex, e-tax payment, e-stamping, SMS alert, POS terminal, and Internet and mobile banking services.
It also provides home, car, two wheeler, personal, LAP, pension, gold overdraft, education, jewel, traders and services, MSME, vyapari, GST, commercial vehicles, rice and dhall mill, Mahalir, doctor, genset, pharma and healthcare, green energy, smart business, and agricultural loans, as well as loans against sovereign gold bonds and secured overdraft facilities; NRI products; and microenterprise and pharma finance.
The company was formerly known as The Nadar Bank Ltd. and changed its name to Tamilnad Mercantile Bank Limited in November 1962. Tamilnad Mercantile Bank Limited was incorporated in 1921 and is headquartered in Thoothukudi, India.
Stock analysis
Tamilnad Mercantile Bank Limited (TMB) currently trades at ₹827.40, while our model-based Fair Value estimate is ₹620.95, 25% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of ₹995.96 per share, and 2 of the 6 models we run sit above the ₹827.40 price.
Bear case: the Dividend Discount group reads lowest at ₹126.95, and 4 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹550.11 (bear) to ₹823.77 (bull), the price of ₹827.40 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 56/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Tamilnad Mercantile Bank Limited reported revenue of ₹67.0B in FY2026 versus ₹46.5B in FY2022, a compound +9.6%/yr. Reported net income was ₹13.4B in FY2026, compounding +12.9%/yr from FY2022.
Key figures
Market cap ₹131B (≈ $1.4B) Small · P/E ratio 9.1 · P/S ratio 3.74 · EPS (TTM) ₹91.21 · Dividend yield 1.5% · Net margin 41.2% · Return on equity 14.5% · Return on assets (EBIT) 2.1% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 65 out of 100 (medium confidence).
What moves the price
The share trades about 12% below its 52-week high and 70% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −28% fair-value upside, at −25%, TMB screens cheaper than that median.
Fair Value models
All 6 models by family
Quality Score breakdown
It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.
Revenue & earnings trend
TMB screens overvalued: fair value 25% below the price. Compare with China Merchants Bank Co →
Compare Tamilnad Mercantile Bank Limited with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Banks - Regional · 996 stocks
Valuation Multiplesvs Banks - Regional median · lower = cheaper
Strength profile in five axes (Snowflake)
VALUE 0: the price sits above our fair-value range.
HEALTH: for banks, insurers and similar financial firms borrowed money is part of the business, so we do not rate debt here.
Context: sector, industry, market
- Is the Financials sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- P/B ratio by industry
- Net margin by industry
- Stock screener with 62 metrics
- Undervalued stocks: Indian Stocks
- Valuation of the India market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Banks - Regional stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value | Compare |
|---|---|---|---|---|
| Postal Savings Bank of China Co 601658 | ¥5.53 | ¥7.59 | +37% | vs TMB |
| China Merchants Bank Co 600036 | ¥42.88 | ¥52.73 | +23% | vs TMB |
| BNP Paribas SA BNP | €91.93 | €106.01 | +15% | vs TMB |
| Intesa Sanpaolo S.p.A ISP | €6.18 | €4.49 | −27% | vs TMB |
| State Bank of India SBIN | ₹1,019 | ₹736.65 | −28% | vs TMB |
| UniCredit S.p.A UCG | €76.80 | €50.44 | −34% | vs TMB |
| Mizuho Financial Group MFG | $9.40 | $5.89 | −37% | vs TMB |
| DBS Group D05 | 69.72 SGD | 40.39 SGD | −42% | vs TMB |
| HDFC Bank Limited HDFCBANK | ₹788.25 | ₹406.39 | −48% | vs TMB |
| ICICI Bank Limited ICICIBANK | ₹1,571 | ₹615.63 | −61% | vs TMB |
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Frequently asked questions
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Key figures of Tamilnad Mercantile Bank Limited
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