AI Summary
✦ ClarthaTamilnad Mercantile Bank is an Indian private-sector bank serving retail, corporate, wholesale, and treasury customers. Retail banking drives deposits and loans through savings accounts, cards, housing, vehicle, gold, and personal finance products. Corporate and wholesale banking adds MSME, trader, commercial vehicle, healthcare, and other business lending. Treasury and fee services, including forex, demat, insurance, and portfolio management, supplement interest income. The scheduled August 11 analyst meeting could clarify growth priorities, asset quality, and margin direction, though no immediate earnings impact is disclosed. Stable margins and 13.1% profit growth exceeding 8.0% revenue growth indicate improving operating leverage, while 14.5% ROE remains reasonable for a private bank. Debt-to-equity is not applicable for banking analysis; deposit funding and asset quality remain more relevant balance-sheet variables. At 9.6x earnings, the stock trades below broad private-bank valuations and appears undervalued, despite neutral sentiment. The key open question is whether loan growth and profitability can accelerate without higher credit costs
Valuation Metrics
Trading 93.0% above historical median. Valuation is stable — currently in the strongly overvalued zone (z-score: +3.61). Confidence: 79%.
Forward outlook is unavailable because live next-12-month estimate data is not available for this ticker right now.
5Y Average
0.93
Current
1.39
Overvalued
1.07
Undervalued
0.79
5Y Average
5.37
Current
9.61
Overvalued
5.64
Undervalued
4.70
5Y Average
2.22
Current
4.02
Overvalued
2.55
Undervalued
1.88
Peers & Comparison
Sector: Financials · Theme: Private Banks
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
J & K BANK LTD. J&KBANKPrivate Banks | — | 34.2% | 7.4x Undervalued | -50% vs avg | +52.4% |
KARNATAKA BANK LIMITED KTKBANKPrivate Banks | +26.1% | 41.5% | 8.0x Undervalued | -46% vs avg | +80.0% |
KARUR VYSYA BANK LTD KARURVYSYAPrivate Banks | +26.0% | 41.3% | 11.7x Undervalued | -21% vs avg | +53.8% |
JANA SMALL FIN BANK LTD JSFBPrivate Banks | +25.1% | 12.9% | 15.0x Fair | +1% vs avg | +19.2% |
CSB BANK LIMITED CSBBANKPrivate Banks | +16.9% | 24.1% | 8.5x Undervalued | -43% vs avg | -26.8% |
BANDHAN BANK LIMITED BANDHANBNKPrivate Banks | +21.6% | 13.6% | 20.6x Premium | +39% vs avg | +6.0% |
CITY UNION BANK LTD CUBPrivate Banks | +23.3% | 37.8% | 15.3x Fair | +3% vs avg | +35.2% |
RBL BANK LIMITED RBLBANKPrivate Banks | +40.8% | 9.1% | 32.3x Premium | +118% vs avg | +50.8% |
TAMILNAD MERCA BANK LTD trades at a discount (9.8x vs peer avg 14.8x), suggesting potential undervaluation relative to the Private Banks cohort. Peers include J & K BANK LTD., KARNATAKA BANK LIMITED, KARUR VYSYA BANK LTD — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹1.79K CrMar 2026Latest net profit
₹374 CrMar 2026Net Profit
₹374 CrProfit conversionPerformance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Mar 2026
Results
| Metric | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,254 | 1,323 | 1,365 | 1,387 | 1,418 | 1,515 | 1,565 | 1,520 | 1,542 | 1,617 | 1,621 | 1,665 | 1,792 |
| Interest Earned | 1,070 | 1,156 | 1,209 | 1,229 | 1,254 | 1,281 | 1,337 | 1,331 | 1,342 | 1,386 | 1,413 | 1,469 | 1,550 |
| Other Income | 184 | 167 | 156 | 158 | 164 | 234 | 227 | 189 | 200 | 231 | 208 | 196 | 242 |
| Interest | 543 | 642 | 676 | 692 | 687 | 715 | 741 | 761 | 774 | 807 | 816 | 823 | 846 |
| Operating Expenses | 307 | 301 | 324 | 325 | 364 | 331 | 358 | 352 | 364 | 399 | 353 | 374 | 424 |
| EBITDA | 404 | 380 | 365 | 370 | 367 | 469 | 465 | 408 | 404 | 412 | 452 | 468 | 522 |
| Provisions | 57.18 | 39 | 23.29 | 2.37 | 23.54 | 85.44 | 64.93 | 3.26 | 17.22 | 8.34 | 20.01 | 1.49 | 18.79 |
| Profit before tax | 347 | 341 | 342 | 368 | 343 | 383 | 400 | 404 | 387 | 404 | 432 | 467 | 504 |
| Tax % | 27.12% | 23.37% | 19.99% | 22.73% | 26.22% | 25.07% | 24.26% | 25.76% | 24.53% | 24.52% | 26.57% | 26.83% | 25.79% |
| Net Profit | 253 | 261 | 274 | 284 | 253 | 287 | 303 | 300 | 292 | 305 | 318 | 342 | 374 |
| Gross NPA % | 1.39% | 1.56% | 1.7% | 1.69% | 1.44% | 1.44% | 1.37% | 1.32% | 1.25% | 1.22% | 1.01% | 0.91% | 0.73% |
| Net NPA % | 0.62% | 0.66% | 0.99% | 0.98% | 0.85% | 0.65% | 0.46% | 0.41% | 0.36% | 0.33% | 0.26% | 0.2% | 0.18% |
| Loans and Advances | 37,290 | 36,955 | 37,509 | 38,116 | 39,734 | 40,530 | 42,156 | — | 43,984 | 44,733 | 46,590 | — | 53,123 |
| Deposits | 47,766 | 47,008 | 47,314 | 46,799 | 49,515 | 49,188 | 49,342 | — | 53,689 | 53,803 | 55,421 | — | 61,712 |
| Borrowings | 525 | 205 | 650 | 1,215 | 1,301 | 1,997 | 1,900 | — | 500 | 535 | 1,284 | — | 700 |
| EPS in Rs | 15.98 | 16.50 | 17.27 | 17.95 | 15.98 | 18.14 | 19.15 | 18.96 | 18.44 | 19.25 | 20.05 | 21.57 | 23.60 |
All values in Rs. Crore unless otherwise stated. Source: CMIE Prowess, Quarterly Interim Standalone.