The Hindu Business Line : Bombay Rayon jumps on value pick

Bombay Rayon Fashions, a mid-cap stock, bucked the overall bearish sentiment on Monday to hit the upper circuit of 20 per cent on value buying by fund houses. Dealers said that the stock had fallen to "attractive valuations" in the recent crash.

A couple of leading domestic brokerage outfits had placed the company among the "top picks" in the textile sector. From the peak of Rs 258.75 on May 11, the stock had fallen to Rs 130 levels last week.

Bombay Rayon is the only garment manufacturer with expertise in fabric development and the company is expected to benefit immensely after the completion of its expansion plan. It will have a shirt manufacturing capacity of 63,500 garments a day after the expansion.

The company also proposes to ramp up its shirting capacity by 40,000 pieces a day, set up a trouser manufacturing unit, and expand its home textile manufacturing capability.

On Monday, the stock ended at Rs 158.75, compared to the previous close of Rs 132.30 on the BSE. The volume was also better than the two-week average.

Rajesh Abraham

More Stories on : Stocks | Ear to the ground | Textiles

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