According to stock market analyst Hitendra Vasudeo, there
are full chances of an upside potential in Bombay Rayon Fashions stock in
today’s trading session.

Today, it opened at Rs 392 as compared to its previous close
at Rs 385.85 on BSE. The stock is likely to generate handsome gains today.

Interested day traders can purchase the stock above Rs 401 to
attain an intraday target that lies between Rs 411-428. The traders can surely
achieve this target as the stock market is trading in the positive mood. The
stop loss is at Rs 161.

Bombay Rayon Fashions (BRFL), the largest manufacturer of
designer shirts, has emerged as one of the chief growing companies in India. The net
sales and profits of the company have grown at a CAGR of 117% and 174%
respectively over the last 2 years.

The market analysts anticipate the accumulation of new
capacities and modification in product mix to make sure continuation of its
robust growth. They have projected the sales and profits to grow at a CAGR of
71% and 80% respectively over FY07-10.

The company`s EBIDTA margins have improved from 11% in FY05
to 19% in FY07 with the help of increased share of garments to its total
revenue that grew from 3% to 40%. Going ahead, the analysts estimate the share
of garments to be scaled up to 55% by FY10, this will translate into further
growth in EBIDTA margins, which is estimated at 23% by FY10.

On Bombay Stock Exchange (BSE), the stock has touched 52-week
high of Rs 395 and a low of Rs 158. At the current price of Rs 389 (1:10 pm),
the stock is trading at a P/E of 27.82.

Those who have already purchased this stock can buy other
brilliant stocks from the same sector. Some of the stock that looks best for
intraday trading today includes Garware Wall and Alps Inds.