Nomura Financial Advisory and Securities has maintained 'Buy' on Reliance Industries (RIL) with revised target price of Rs 1,115 from Rs 1,175 as against current market price (CMP) of Rs 879 in its report.

Commenting on the investment rationale, Nomura said, ''2014 has been another disappointment, it is RIL's seventh consecutive year of underperformance relative to the Sensex, and is likely to be the worst (RIL down -2% vs. Sensex up 29%). The low gas price hike was a letdown to investors, and makes E&P unexciting. In 2015F, we think most focus will be on the much-anticipated telecom launch,

However, focus is also likely to be on the fast-completing petchem/ refining expansion plans which should further increase RIL's competitive advantage, and be a key driver of 70% earnings growth over the next four years. While telecom is likely to be a key driver for the stock in 2015F, we believe petchem/refining growth will bring an end to the long phase of RIL's underperformance soon.

Apart from our earnings estimate cuts, we sharply cut our E&P valuation by 55% to Rs 140, as domestic E&P has become dull due to the low price increase. We roll forward our SOTP-based valuation to FY17F (year-ending Mar-17). The sharp cut in our E&P value is offset by the increase in refining valuation due to the impact of the petcoke gasification project that will commence in FY17F. Hence, we lower our TP to Rs 1,115 (from Rs 1,175), which implies a 27% upside potential. We maintain our Buy rating.''

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