Brokers' picks: JP Morgan ‘Overweight’ on RIL

Target: Rs 1,000

Current Price: Rs 867

JP Morgan remains positive on RIL’s expansions in its core businesses.

Regionally, JP Morgan prefers stocks with strong exposure to organic growth, high level of integration and earnings resiliency.

They expect focus to begin to shift to expansion-led earnings growth in FY15 (18 per cent over FY13-17), which will begin to drive stock performance.

It does concede that near-term performance could be choppy, with continuing news flow over E&P.

Key downside risks, are project delays, weaker refining/PX margins and adverse E&P regulations.