Tamilnad Mercantile Bank (NSE:TMB) Beneish M-Score: -2.40 (As of Jun. 25, 2026)


NSE:TMB Tamilnad Mercantile Bank Ltd NSE:TMB
57 GF Score
Price ₹763.45
GF Value ₹560.53
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Tamilnad Mercantile Bank Beneish M-Score?

Tamilnad Mercantile Bank NSE:TMB +0.57% 57 Beneish M-Score is -2.40 as of Jun. 25, 2026. GuruFocus rates NSE:TMB with a GF Score™ of 57/100 and a GF Value™ of ₹560.53 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,396 Banks companies, Tamilnad Mercantile Bank ranks better than 50.64% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Tamilnad Mercantile Bank's Beneish M-Score or its related term are showing as below:

NSE:TMB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.42   Med: -2.41   Max: -2.4
Current: -2.4

During the past 7 years, the highest Beneish M-Score of Tamilnad Mercantile Bank was -2.40. The lowest was -2.42. And the median was -2.41.

NSE:TMB
57GF Score
Tamilnad Mercantile Bank Ltd NSE:TMB
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Tamilnad Mercantile Bank Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Tamilnad Mercantile Bank for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 1.0002+0.892 * 1.0803+0.115 * 1.0129
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0174+4.679 * 0.019103-0.327 * 1.2355
=-2.40

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₹0 Mil.
Revenue was ₹34,039 Mil.
Gross Profit was ₹34,039 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹752,996 Mil.
Property, Plant and Equipment(Net PPE) was ₹3,106 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹926 Mil.
Selling, General, & Admin. Expense(SGA) was ₹219 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹7,000 Mil.
Net Income was ₹13,375 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹-1,009 Mil.
 Total Receivables was ₹0 Mil.
Revenue was ₹31,509 Mil.
Gross Profit was ₹31,509 Mil.
Total Current Assets was ₹0 Mil.
Total Assets was ₹664,499 Mil.
Property, Plant and Equipment(Net PPE) was ₹2,845 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹862 Mil.
Selling, General, & Admin. Expense(SGA) was ₹199 Mil.
Total Current Liabilities was ₹0 Mil.
Long-Term Debt & Capital Lease Obligation was ₹5,000 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 34039.393) / (0 / 31508.856)
=0 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(31508.856 / 31508.856) / (34039.393 / 34039.393)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 3105.553) / 752995.975) / (1 - (0 + 2844.838) / 664498.704)
=0.995876 / 0.995719
=1.0002

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=34039.393 / 31508.856
=1.0803

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(862.331 / (862.331 + 2844.838)) / (925.811 / (925.811 + 3105.553))
=0.232612 / 0.229652
=1.0129

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(218.585 / 34039.393) / (198.878 / 31508.856)
=0.006422 / 0.006312
=1.0174

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((7000 + 0) / 752995.975) / ((5000 + 0) / 664498.704)
=0.009296 / 0.007524
=1.2355

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(13375.476 - 0 - -1008.738) / 752995.975
=0.019103

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Tamilnad Mercantile Bank has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.40 mean?
Tamilnad Mercantile Bank (NSE:TMB) has a Beneish M-Score of -2.40 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Tamilnad Mercantile Bank and its competitors. According to the industry distribution chart, Tamilnad Mercantile Bank ranks #689 out of 1396 companies in the Banks industry, placing it in the top 49.4%.
Is Tamilnad Mercantile Bank's Beneish M-Score too high?
Tamilnad Mercantile Bank's current Beneish M-Score is -2.40. Based on the distribution chart, Tamilnad Mercantile Bank ranks #689 out of 1396 companies in the Banks industry, which is above the industry midpoint. Overall, Tamilnad Mercantile Bank has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tamilnad Mercantile Bank's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, Tamilnad Mercantile Bank ranks #689 out of 1396 companies for Beneish M-Score. This puts Tamilnad Mercantile Bank in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Tamilnad Mercantile Bank and its competitors. Tamilnad Mercantile Bank's current Beneish M-Score is -2.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tamilnad Mercantile Bank stock overvalued right now?
Based on GuruFocus' analysis, Tamilnad Mercantile Bank (NSE:TMB) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹560.53, compared to a current price of ₹763.45 — trading 36.2% above its estimated fair value. The current Beneish M-Score is -2.40. Tamilnad Mercantile Bank's overall GF Score™ is 57/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Tamilnad Mercantile Bank (NSE:TMB), the current Beneish M-Score is -2.40 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Tamilnad Mercantile Bank (NSE:TMB) Overvalued in 2026?

Based on GuruFocus' analysis, Tamilnad Mercantile Bank stock appears to be overvalued. The current stock price of ₹763.45 is trading 36.2% above its estimated GF Value™ of ₹560.53. GuruFocus considers Tamilnad Mercantile Bank to be Significantly Overvalued.

Key valuation signals for NSE:TMB:

  • Beneish M-Score: -2.40
  • GF Value™: ₹560.53 vs. price of ₹763.45 (36.2% above fair value)
  • GF Score™: 57/100 with 5 warning signs

No single metric tells the full story. See the NSE:TMB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Tamilnad Mercantile Bank Business Description

Other Exchanges 543596:India
Address No. 57, Victoria Extension Road, Tuticorin, TN, IND, 628 002
Tamilnad Mercantile Bank Ltd is engaged in providing a wide range of banking & financial services involving retail, corporate banking and para-banking activities in addition to treasury and foreign exchange business. The company has a portfolio of advances and deposits from a diversified customer base including retail customers, agricultural customers, and MSMEs. The segments of the bank are Treasury, Corporate and Wholesale banking, Retail banking, and Other banking Operations. It generates the majority of its revenue from the Retail banking segment.
57GF Score

Get the complete analysis for NSE:TMB

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹763.45
Price
₹560.53
GF Value