Vikas Sethi, MD of Sethi Finmart is of the view that Bombay Rayon has target of Rs 500.

Sethi told CNBC-TV18, "Bombay Rayon came out with fantastic results for this quarter with its net profit rising more than 150% to around Rs 34.5 crore. This company has recently announced its investment plans of investing around Rs 1100 crore in Maharashtra for setting up 10 factories in six major cities in Maharashtra. The proposed expansion plan would become operational in Q3 FY09 and this would immensely benefit the company from economies of scale. I expect this company to achieve a CAGR of 71% in net sales and 80% in PAT for the next three years. The company is expected to report an EPS of Rs 50 for FY10 and I would expect a target price of Rs 500 in 12 months time."

Disclosure: Analyst doesn't have any personal investments in the above stock. But have recommended them to his clients.