J.P.Morgan rates Reliance Industries at 'underweight'

Fri Apr 13, 2012 9:48am IST

India's Reliance Industries' KG-D6 facility located in the Indian state of Andhra Pradesh is pictured in this undated handout photo. REUTERS/Reliance Industries/Handout

India's Reliance Industries' KG-D6 facility located in the Indian state of Andhra Pradesh is pictured in this undated handout photo.

Credit: Reuters/Reliance Industries/Handout

Related Topics

Stocks

   

Reuters Market Eye - J.P.Morgan's re-initiated coverage of Reliance Industries, India's biggest energy conglomerate, with an "underweight" rating and a price target of 650 rupees citing a lack of earnings growth and high valuations.

The investment bank added it had a "negative" outlook on Reliance's refining and petchem businesses, while "sustained" weakness in its downstream business would cause earnings downgrades.

J.P.Morgan added Reliance's upstream outlook was "cloudy," saying it expected natural gas production to decline in the near-term.

Reliance shares have risen 7.3 percent year to date, heavily under-performing the 13.7 percent gain in India's 50-share Nifty index.

Shares rose 1.8 percent to end at 743.3 rupees on Thursday.

(Reporting by Abhishek Vishnoi; Editing by Rafael Nam)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Microsoft Earnings

Microsoft Earnings

Microsoft sales beat Street hopes, cloud profits up.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

U.S. Economy

U.S. Economy

Spectre of no-inflation world looms over Fed's return to normal  Full Article 

Insider Trading

Insider Trading

Rengan Rajaratnam, SEC to settle civil insider trading charge.  Full Article 

Market Watch

Market Watch

Betting on the beaten up? Investors pin hopes on stocks in Europe, Japan.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage