JPMorgan has slashed its target price on mobile operator Reliance Communications by 49 percent to 82 rupees, citing lower estimates for wireless and broadband segments and issues related to spectrum regulations.
It maintained its neutral rating on the stock in a research note dated Feb. 16 and seen by Reuters on Thursday.
Billionaire Anil Ambani, who controls the No. 2 mobile carrier, was questioned on Wednesday by federal police in a widening corruption investigation that has battered the government.
Shares in Reliance Communications closed 1.7 percent lower at 99.70 rupees on Wednesday, while the main stock index gained 0.2 percent. The stock has lost 31.3 percent this year, compared with a 10.5 percent drop in the index