Tisco has been easing of late as funds are shedding the stock, after an initial buying onslaught took hold of the counter following the company's solid results.

Today, Tisco has edged down 1% to Rs 148.30 on BSE . It had lost as much as 1.7% to a low of Rs 147.35, earlier. Around 3.75 lakh Tisco shares were traded on the counter by mid-morning trades.

The stock, which had surged sharply in the run up to the Q4 results and on the back of a broad based rally in Old Economy stocks, has pared some of those gains in the last few trading sessions. On 6 June 2003, the stock dropped 3.7% to Rs 155.75 on becoming ex-dividend (the company had announced a liberal dividend of Rs 8 per share). The stock has lost further ground to the current Rs 148-level, since then.

According to market sources, leading local institutional investor UTI has been booking profit in the stock of late. Tisco had witnessed a sustained rise since late 2001 on the back of firm steel prices and the stock currently is near its 52-week high. This, perhaps, is the reason why UTI could be booking profit in the stock, dealers said.

But analysts remain bullish about the stock largely due to its attractive valuation  and the company's focus on increasing the share of value-added products and its emphasis on export. For Q4 ended 31 March 2003, 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$ terms 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 xould 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.