Tamilnad Mercantile BankNSE:TMB -2.24%57 Return-on-Tangible-Equity is 15.03% as of Mar. 2026, which is 7% above its 10-year median of 14.10. GuruFocus rates NSE:TMB with a GF Score™ of 57/100 and a GF Value™ of ₹560.80 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,521 Banks companies, Tamilnad Mercantile Bank ranks better than 68.77% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Tamilnad Mercantile Bank's annualized net income for the quarter that ended in Mar. 2026 was ₹14,946 Mil. Tamilnad Mercantile Bank's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹99,420 Mil. Therefore, Tamilnad Mercantile Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.03%.
The historical rank and industry rank for Tamilnad Mercantile Bank's Return-on-Tangible-Equity or its related term are showing as below:
NSE:TMB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.24 Med: 14.1 Max: 16.78
Current: 14.03
During the past 7 years, Tamilnad Mercantile Bank's highest Return-on-Tangible-Equity was 16.78%. The lowest was 10.24%. And the median was 14.10%.
NSE:TMB's Return-on-Tangible-Equity is ranked better than 68.77% of 1521
companies
in the Banks industry
Industry Median: 11.19
vs NSE:TMB: 14.03
Tamilnad Mercantile Bank (NSE:TMB) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Tamilnad Mercantile Bank Return-on-Tangible-Equity Related Terms
Tamilnad Mercantile Bank Return-on-Tangible-Equity Historical Data
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The historical data trend for Tamilnad Mercantile Bank's Return-on-Tangible-Equity can be seen below:
* 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.
Tamilnad Mercantile Bank Return-on-Tangible-Equity Chart
Tamilnad Mercantile Bank Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, Tamilnad Mercantile Bank's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tamilnad Mercantile Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Tamilnad Mercantile Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tamilnad Mercantile Bank's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.03% mean?
Tamilnad Mercantile Bank (NSE:TMB) has a Return-on-Tangible-Equity of 15.03% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tamilnad Mercantile Bank and its competitors. This is near median its historical median of 14.10. Over the past decade, Tamilnad Mercantile Bank's Return-on-Tangible-Equity has ranged from 10.24 to 16.78. According to the industry distribution chart, Tamilnad Mercantile Bank ranks #475 out of 1521 companies in the Banks industry, placing it in the top 31.2%.
Is Tamilnad Mercantile Bank's Return-on-Tangible-Equity too high?
Tamilnad Mercantile Bank's current Return-on-Tangible-Equity of 15.03% is near median its 10-year median of 14.10. Over the past 10 years, this metric has ranged from a low of 10.24 to a high of 16.78. The Banks industry median Return-on-Tangible-Equity is 11.19. Tamilnad Mercantile Bank's value of 15.03% is 34.3% above this industry median. Based on the distribution chart, Tamilnad Mercantile Bank ranks #475 out of 1521 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 Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, Tamilnad Mercantile Bank ranks #475 out of 1521 companies for Return-on-Tangible-Equity. This puts Tamilnad Mercantile Bank in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.19. Tamilnad Mercantile Bank's value of 15.03% is 34.3% above this benchmark. Historically, Tamilnad Mercantile Bank's own Return-on-Tangible-Equity has ranged from 10.24 to 16.78 over the past decade. While the company's 10-year median is 14.10 vs. the industry median of 11.19, Tamilnad Mercantile Bank has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.19, based on 1,521 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tamilnad Mercantile Bank's current Return-on-Tangible-Equity of 15.03% is 34.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tamilnad Mercantile Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tamilnad Mercantile Bank's current Return-on-Tangible-Equity is 15.03%, which is near median its own 10-year median of 14.10. 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 ₹560.80, compared to a current price of ₹750.90 — trading 33.9% above its estimated fair value. The current Return-on-Tangible-Equity is 15.03%, which is near median its 10-year median of 14.10 and 34.3% above the Banks industry median of 11.19. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Tamilnad Mercantile Bank (NSE:TMB), the current Return-on-Tangible-Equity is 15.03% as of Mar. 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 ₹750.90 is trading 33.9% above its estimated GF Value™ of ₹560.80.
GuruFocus considers Tamilnad Mercantile Bank to be Significantly Overvalued.
Key valuation signals for NSE:TMB:
Return-on-Tangible-Equity: 15.03% (near median its 10-year median of 14.10)
GF Value™: ₹560.80 vs. price of ₹750.90 (33.9% above fair value)
Industry Position: 34.3% above the Banks median (#475 of 1521)
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 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
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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