British bank Barclays have downgraded Reliance Communications Ltd to "underweight" from "neutral", citing expensive valuations after recent outperformance.
Reliance Communications has remained highly leveraged and has limited ability to increase capex, which would keep its mobile business "significantly weaker than peers", Barclays added.
Reliance Communications' shares had risen 116.5% in the last one year as of Monday's close, compared with the broader NSE index's 9% gain in the same period.
Barclays has reiterated Bharti Airtel Ltd as its top pick in the telecom sector with an "overweight" rating and a price target of Rs. 393.
Reliance Communication shares were up 1.1% and Bharti was down 0.7% at 0637 GMT.