Telco proved a strong mover in early trades today, even scaling a 52-week high.

The scrip of the Tata group commercial vehicles and car maker edged up 1.7% to Rs 175.10. It had hit its 52-week high of Rs 175.50 early in the day. Around 1.11 lakh Telco shares changed hands on BSE in just a few few minutes of trading.

The scrip has been witnessing sustained buying interest over the last few trading sessions. From Rs 150.20 on 24 April 2003, the stock has surged 16.5% in the past 21 trading sessions to the current Rs 175.10.

The latest surge on the counter comes on the reckoning that Telco's Q4 ended 31 March 2003 results will prove decent. Telco announces its Q4 and FY 2002-03 results on Tuesday, 27 May 2003.

For Q4 , analysts expect Telco to post a 165% growth in net profit to Rs 160 crore on a 20% growth in net sales to Rs 3,000 crore. The stock has also lit up due to expectations of a normal monsoon this year.

Recent reports that the company expects sales of commercial vehicles to grow by 9-10% in the financial year ending 31 March 2004, as against the expected industry growth of 7-8% has also boosted the stock.

According to auto analysts, Telco is expected to record further growth in the coming months due to the government's thrust on infrastructure projects, the boom in the replacement market and the shift in consumer preference from one- and two-axle vehicles to multiple-axle vehicles (in which Telco holds No. 1 position).

Besides, the company has resorted to aggressive cost-cutting and financial restructuring.

Telco reported total sales of 2,19,860 vehicles (including exports) for 2002-03, representing a growth of 19.9% over the corresponding period last year (1,83,224 units). This was the highest ever sales achieved by the company in a fiscal year. Sales for the month of March 2003 were at 27,547 vehicles.

Export sales for FY 2002-03 were at 8,007 units. The company sold 1,121 vehicles in export markets in March 2003.

Cumulative sales of commercial vehicles in the domestic market were at 1,07,442 vehicles in 2002-03 representing an increase of 30.1% over 82,564 vehicles sold in the corresponding period last year. Medium and heavy commercial vehicles (M&HCV) sales for the year were at 74,323 units, up by 31.1%.

Light commercial vehicle (LCV) sales at 33,119 vehicles grew by 28.1% over the corresponding period last year. Commercial vehicle sales for the month of March 2003 were at 12,011 units.