Profit base of 500 crores likely for Bombay Rayon in 2 years: Dilip Bhat

Dilip Bhat, Joint Managing Director, Prabhudas Lilladher spoke to ET Now on Bombay Rayon.

Why are you bullish on Bombay Rayon with a target of Rs 375?

They have completed a massive expansion and from hereon, you will see from the next 8 to 9 quarters, quarter on quarter growth.

More importantly, in two years' time, you will see a profit base of around Rs 500 crore from the current level of around 200 crore and maybe by 2010-2011, it could be almost about Rs 300 to 325 crore. And the way the Chinese yuan and the labour cost is moving, it will work tremendously to the advantage of the Indian garment manufacturers and that is one company which is reasonably very well run. So that is one of the main reasons why we like Bombay Rayon.