Tisco slumped in early trades, in striking contrast to its recent upbeat run, as the scrip went ex-dividend from today.

The scrip dropped a solid Rs 8.35 or 5% to Rs 153.50 just as trading commenced on BSE. It had hit a low of Rs 152.65. Around 1.8 lakh Tisco shares changed hands on BSE in the first few minutes since commencement today.

Tisco's fall manifested from its becoming ex-dividend from today. Tisco had declared a liberal dividend of Rs 8 per share, which provided the scrip solid impetus of late. Its shares have been a firm feature of the market recently - rising from a low of Rs 127.75 on 24 April 2003.

Analysts are bullish about the stock, though, due to the attractive valuation of the scrip, the company's focus on increasing the share of value-added products and its emphasis on exports. For Q4, Tisco recorded a massive 283% rise in net profit to Rs 469.08 crore (Rs 122.47 crore) on a 39.5% increase in net sales to Rs 2,664.76 crore (Rs 1,911.48 crore).

The Q4 net profit as well as net sales beat projections made by a capitalmarket.com poll - a rise of 177% to 252% in net profit to Rs 339.5-431 crore and net sales of Rs 2,459 crore-2,555.3 crore.

For FY 2002-03, Tisco recorded a 394% rise in net profit to Rs 1,012.31 crore (Rs 204.90 crore) on a 29.3% increase in total income to Rs 8,771.71 crore (Rs 6,783.12 crore). On a consolidated basis, the group posted a huge 428% increase in net profit to Rs 1,021.77 crore (Rs 193.57 crore) on a 22.3% rise in total income to Rs 9,183.74 crore (Rs 7,511.36 crore).

Increase in sales realisations due to firm product prices and a higher share of value added products boosted Q4 results. A surge in exports also aided the strong growth. Tisco reported an impressive 144% growth in exports to Rs 422.15 crore in the quarter ended 31 March 2003.

As a result, the share of exports (in sales, net of excise duties) jumped to 15.8% in the quarter from 9% in the previous corresponding quarter. Exports in US$ jumped by 152% to US$ 88.73 million.

Tisco has been engaged in mining of iron ore, sourcing its ore from captive mines in Jojobera. Now the company plans to start iron ore mining as a commercial activity. This would not only add to the revenues of the company, but could also help in reducing its own raw material costs, analysts feel.

This initiative would boost the company's growth, and also make it a fully integrated player having presence in activities starting right from mining to galvanizing.

The bullishness on the Tisco counter stems from expectations of a recovery in domestic steel demand. The Centre's thrust on infrastructure in the Union Budget for 2003-04 has played a major part in boosting these expectations. Principally, investments will be made in railways, airports and sea ports through an innovative funding mechanism.