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Salomon ups Tisco net estimates

Salomon Smith Barney has raised its earnings forecasts for Tata Iron and Steel Co, India's largest private sector steelmaker, saying gains stemming from changes in its product mix and cost savings are likely to be better than previously thought.

The brokerage said in a research report that it had also raised its one-year price target for Tisco's shares to Rs 153 from Rs 145. The new target represents an 18 per cent increase from the current level.

In mid-morning trade on Wednesday, Tisco's shares were trading 1.7 per cent lower at Rs 129.65, while the Sensex was 0.64 per cent higher at 4,096.65.

Yet the brokerage retained a neutral rating on the stock, citing weak global steel demand and prices.

Salomon raised its net profit estimates for Tisco -- by 15 per cent to Rs 6.8 billion for the current year to March, and by 6 per cent to Rs 7.5 billion for the following year.

On Tuesday after market hours, Tisco announced a net profit of Rs 1.28 billion for the October-December quarter, down from Rs 1.46 billion a year earlier. But the year-earlier result was inflated by Rs 1.25 billion in extraordinary income.

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