The excitation of the TM01 mode due to the interaction of a relativistic electron beam with guided wave in a circular waveguide loaded with alternate metal and dielectric discs is studied. The wave equation describing the excited field is solved to obtain the dispersion relation and growth rate. The resulted growth rate is analyzed numerically over a wide range of system parameters. It is found that the growth rate, bandwidth, and the wave number corresponding to the peak growth could be controlled by the dielectric permittivity, thickness and beam parameters.