CLSA says underweight trade on Reliance Industries Ltd is over due to a combination of growth, benign consensus expectations, below-average valuations and buyback support.
The research house adds after five years of underperformance it's "time to cut under-weight" on the stock as government approvals lead to reserve upgrades, rise in production and higher gas price, while its $12 billion downstream expansion would be completed by FY16 leading to doubling of profits.
CLSA raised its target price on Reliance stock to Rs 850 from Rs 790 while maintaining its "outperform" rating.
At 12:41 p.m, shares in Reliance Industries were up 3 percent at Rs 791.80.