Tamilnad Mercantile Bank Limited

BSE:543596 Stock Report

Market Cap: ₹70.2b

Tamilnad Mercantile Bank Valuation

Is 543596 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 543596 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 543596 (₹448.85) is trading below our estimate of fair value (₹462.59)

Significantly Below Fair Value: 543596 is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 543596?

Key metric: As 543596 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 543596. This is calculated by dividing 543596's market cap by their current earnings.
What is 543596's PE Ratio?
PE Ratio6.3x
Earnings₹11.28b
Market Cap₹70.22b

Price to Earnings Ratio vs Peers

How does 543596's PE Ratio compare to its peers?

The above table shows the PE ratio for 543596 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.9x
EQUITASBNK Equitas Small Finance Bank
16x46.0%₹71.2b
KTKBANK Karnataka Bank
5.8x7.8%₹78.4b
J&KBANK Jammu and Kashmir Bank
5.3x1.6%₹107.1b
CUB City Union Bank
12.6x9.9%₹128.7b
543596 Tamilnad Mercantile Bank
6.3xn/a₹70.2b

Price-To-Earnings vs Peers: 543596 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (9.9x).


Price to Earnings Ratio vs Industry

How does 543596's PE Ratio compare vs other companies in the IN Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
543596 6.3xIndustry Avg. 9.9xNo. of Companies7PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 543596 is good value based on its Price-To-Earnings Ratio (6.3x) compared to the Indian Banks industry average (9.9x).


Price to Earnings Ratio vs Fair Ratio

What is 543596's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

543596 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 543596's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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