Deutsche Bank has downgraded Reliance Communications to "sell" from "hold", saying valuations are excessive given uncertain prospect about its plans to spin off its real estate business and cut mobile 3G tariffs.
Deutsche said investors should not factor in upsides in those two plans, noting "there are significant hurdles to realisation of value."
Reliance Communications this month announced its intention to spin off its real estate business into a separately listed unit and plans to cut the price of its premium third-generation data services by half in a bid to attract a bigger customer base.
Reliance Communications shares have gained over 11 percent this month taking its overall gains to almost 79 per cent so far this year.
Copyright: Thomson Reuters 2013
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