Foreign brokerage UBS on Tuesday initiated coverage on Indian chemical manufacturers with two 'buy' and 'sell' ratings each. It assigned 'buy' ratings to PI Industries (PIIND) and Navin Fluorine International (NAVINFLUOR) with targets of Rs 4,800 and 4,250 respectively. 

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Its targets imply an upside of 27.1 per cent in PI Industries and 30.7 per cent in Navin Fluorine, as of May 14. 

"We prefer PI given its strong growth, management track record, less volatile business model and potential scale up of the pharma vertical. Navin is leveraging growth opportunities in agrochemicals, CDMO and 3rd/4th-gen refrigerants," analysts at UBS wrote in a research report.

On the other hand, the brokerage assigned a 'sell' call each to Aarti Industries (AARTIIND) and Gujarat Fluorochemicals (FLUOROCHEM) with targets of Rs 615 and Rs 3,000.

"Aarti is expanding capacity in existing and new chains, but its higher cyclical dependancy and debt levels are coupled with high near-term EBITDA guidance. GFL is exposed to Chinese overcapacity in fluoropolymers while its EV business fundamentals are not yet established," the report added. 

(This story will be updated shortly)