Tamilnad Mercantile Bank Ltd

Tamilnad Mercantile Bank Ltd

₹ 491 0.06%
23 Feb - close price
About

Incorporated in 1921, Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks in India. It offers an array of banking and financial services to retail customers, micro, small, and medium enterprises (MSMEs).[1]

Key Points

Leading Private sector Bank[1] Tamilnad Mercantile Bank Limited (“TMB”) is one of the oldest and leading private sector banks in India with a history of almost 100 years. As of FY22, the bank has a strong branch network of 509 branches of which 106 branches are in rural, 247 in semi-urban, 80 in urban, and 76 in metropolitan centers. TMB has a customer base of 5.08 million with significant presence in Tamil Nadu with 369 branches. TMB is also present in 15 other states and 4 union territories of India.

  • Market Cap 7,770 Cr.
  • Current Price 491
  • High / Low 611 / 396
  • Stock P/E 7.25
  • Book Value 438
  • Dividend Yield 1.02 %
  • ROCE 6.41 %
  • ROE 16.8 %
  • Face Value 10.0

Pros

  • Stock is trading at 1.12 times its book value
  • Company has delivered good profit growth of 35.9% CAGR over last 5 years

Cons

  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 4.66% over past five years.
  • Contingent liabilities of Rs.6,519 Cr.
  • Company might be capitalizing the interest cost

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

Peer comparison

Sector: Banks Industry: Banks - Private Sector

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Quarterly Results

Figures in Rs. Crores

Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023
Revenue 950 959 986 1,002 997 1,012 1,070 1,156 1,209 1,229
Interest 511 507 499 478 488 478 543 642 676 692
308 418 422 344 298 323 364 340 347 327
Financing Profit 131 34 66 180 211 211 163 174 186 210
Financing Margin % 14% 4% 7% 18% 21% 21% 15% 15% 15% 17%
151 254 214 140 145 161 184 167 156 158
Depreciation 0 0 0 0 0 0 0 0 0 0
Profit before tax 282 288 280 319 355 372 347 341 342 368
Tax % 32% 30% 19% 27% 26% 25% 27% 23% 20% 23%
191 203 227 234 262 280 253 261 274 284
EPS in Rs 13.38 14.24 15.93 16.43 16.56 17.66 15.98 16.50 17.27 17.95
Gross NPA % 3.31% 3.08% 1.69% 1.69% 1.70% 1.70% 1.39% 1.56% 1.70% 1.69%
Net NPA % 1.82% 1.44% 0.95% 0.93% 0.86% 0.75% 0.62% 0.66% 0.99% 0.98%
Raw PDF

Profit & Loss

Figures in Rs. Crores

Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 TTM
Revenue 3,250 3,224 3,466 3,609 3,834 4,081 4,664
Interest 2,041 1,994 2,147 2,072 2,019 1,987 2,553
1,366 1,350 1,231 1,355 1,470 1,276 1,378
Financing Profit -157 -120 89 183 346 818 733
Financing Margin % -5% -4% 3% 5% 9% 20% 16%
506 414 526 644 812 629 665
Depreciation 40 36 30 29 33 54 0
Profit before tax 310 259 585 798 1,125 1,394 1,398
Tax % 28% 0% 30% 24% 27% 26%
222 259 408 603 822 1,029 1,072
EPS in Rs 15.57 18.14 28.61 42.34 57.67 65.00 67.70
Dividend Payout % 21% 13% 13% 0% 9% 8%
Compounded Sales Growth
10 Years: %
5 Years: 5%
3 Years: 6%
TTM: 17%
Compounded Profit Growth
10 Years: %
5 Years: 36%
3 Years: 36%
TTM: 7%
Stock Price CAGR
10 Years: %
5 Years: %
3 Years: %
1 Year: 8%
Return on Equity
10 Years: %
5 Years: 14%
3 Years: 16%
Last Year: 17%

Balance Sheet

Figures in Rs. Crores

Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Equity Capital 143 143 143 143 143 158
Reserves 3,262 3,476 3,837 4,437 5,193 6,770
32,941 35,136 37,149 40,970 44,933 48,291
1,522 1,719 1,604 1,948 2,559 2,646
Total Liabilities 37,868 40,473 42,733 47,499 52,828 57,866
140 138 128 137 211 246
CWIP 0 0 0 0 0 0
Investments 10,364 9,107 9,467 11,703 13,242 14,156
27,364 31,228 33,137 35,658 39,374 43,464
Total Assets 37,868 40,473 42,733 47,499 52,828 57,866

Cash Flows

Figures in Rs. Crores

Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
-389 0 0 -670 1,325 -1,270
-26 0 0 -37 -107 -89
472 0 0 -324 -71 1,088
Net Cash Flow 58 0 0 -1,031 1,147 -270

Ratios

Figures in Rs. Crores

Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
ROE % 7% 11% 14% 17% 17%

Shareholding Pattern

Numbers in percentages

Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
23.16% 0.58% 0.22% 0.07% 2.06% 3.13%
5.61% 5.48% 5.32% 5.09% 3.85% 3.20%
71.24% 93.95% 94.46% 94.86% 94.11% 93.68%
No. of Shareholders 90,02082,84496,0071,06,2971,01,7241,05,095

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

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