UBS bullish on PI Industries and Navin Fluorine

Brokerage UBS has initiated coverage on four chemical companies PI Industries, Navin Fluorine, Aarti Industries and Gujarat Fluorochemicals. The firm has buy ratings on PI and Navin, while sell on Aarti and Gujarat Fluorochemicals. UBS said Indian chemical companies scaled up capex by four times in the FY16-23 period.

“We think investors may be ignoring Indian chemicals companies’ strong niche positions and growth opportunities within the context of the worst global destocking cycle in chemicals over the past 30 years, but we see signs of modest volume recovery,” said the brokerage’s analysts in a note to clients. UBS said two years of underperformance in these stocks refl ects the sector’s negative earnings momentum.