Nirmal Bang, one of the leading equity research-cum-broking house, has recommended a buy on Bombay Rayon Fashions Ltd (BRFL), which has been consolidating between 218-200 for quite some time, with a target of Rs 245 in the short term.

The report further stated that, if the counter is successful to breach Rs 237, then it will create a huge breakout

In addition, the firm has suggested a support level for the scrip at Rs 208.

Today (Sep 16), the shares of the company opened at Rs 226.80 on the Bombay Stock Exchange (BSE). Current EPS and P/E of the stock stood at 17.32 & 12.86 respectively. The share price has seen a 52-week high of Rs 358.90 and a low of Rs 80.30 on BSE.

During a meeting on Sep 01, 2009, BRFL's directors have sanctioned the plan to issue, offer and allot in one or more overseas market places or domestic markets, stocks and/or instruments convertible into or linked to equity share, optionally or otherwise, comprising but not limited to GDR's/ADR's/FCCB's/QIB for a total sum upto Rs 5 billion with or without green shoe alternative to one or more investors' group via Public Issue(s), Private Placement(s), Preferential Issue(s) or grouping thereof.

Moreover, the company's directors have also sanctioned the issue of 10 million optionally convertible warrants to the promoters/promoter group convertible into equal number of equity shares in line with SEBI rules for preferential Issues.