Tamilnad Mercantile BankNSE:TMB -4.04%57 ROE % 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 ₹560.58 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,524 Banks companies, Tamilnad Mercantile Bank ranks better than 75.85% on this metric.
The historical rank and industry rank for Tamilnad Mercantile Bank's ROE % or its related term are showing as below:
NSE:TMB'
s ROE % 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 ROE % was 16.78%. The lowest was 10.24%. And the median was 14.10%.
NSE:TMB's ROE % is ranked better than 75.85% of 1524
companies
in the Banks industry
Industry Median: 10.22
vs NSE:TMB: 14.03
Tamilnad Mercantile Bank (NSE:TMB) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE % Competitor Comparison
For the Banks - Regional subindustry, Tamilnad Mercantile Bank's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Tamilnad Mercantile Bank's ROE % distribution charts can be found below:
* The bar in red indicates where Tamilnad Mercantile Bank's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Tamilnad Mercantile Bank (NSE:TMB) has a ROE % of 15.03% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total 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 ROE % has ranged from 10.24 to 16.78. According to the industry distribution chart, Tamilnad Mercantile Bank ranks #368 out of 1524 companies in the Banks industry, placing it in the top 24.1%.
Is Tamilnad Mercantile Bank's ROE % too high?
Tamilnad Mercantile Bank's current ROE % 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 ROE % is 10.22. Tamilnad Mercantile Bank's value of 15.03% is 47.1% above this industry median. Based on the distribution chart, Tamilnad Mercantile Bank ranks #368 out of 1524 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. 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 ROE % compare to competitors?
According to the Banks industry distribution chart, Tamilnad Mercantile Bank ranks #368 out of 1524 companies for ROE %. This places Tamilnad Mercantile Bank in the top 24% of its industry — outperforming the majority of peers. The industry median ROE % is 10.22. Tamilnad Mercantile Bank's value of 15.03% is 47.1% above this benchmark. Historically, Tamilnad Mercantile Bank's own ROE % 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 10.22, 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 ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tamilnad Mercantile Bank's current ROE % of 15.03% is 47.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tamilnad Mercantile Bank and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tamilnad Mercantile Bank's current ROE % 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 ₹560.58, compared to a current price of ₹732.60 — trading 30.7% above its estimated fair value. The current ROE % is 15.03%, which is near median its 10-year median of 14.10 and 47.1% above the Banks industry median of 10.22. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Tamilnad Mercantile Bank (NSE:TMB), the current ROE % 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 ₹732.60 is trading 30.7% above its estimated GF Value™ of ₹560.58.
GuruFocus considers Tamilnad Mercantile Bank to be Significantly Overvalued.
Key valuation signals for NSE:TMB:
ROE %: 15.03% (near median its 10-year median of 14.10)
GF Value™: ₹560.58 vs. price of ₹732.60 (30.7% above fair value)
Industry Position: 47.1% above the Banks median (#368 of 1524)
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
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