JP Morgan's re-initiated coverage of Reliance Industries, India's biggest energy conglomerate, with an "underweight" rating and a price target of Rs 650 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.
JP 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% year to date, heavily under-performing the 13.7% gain in India's 50-share Nifty index.
Shares rose 1.8% to end at Rs 743.3 on Thursday.