Wait for correction before adding on metals pack: Suraj Saraogi, Keynote Capital

Suraj Saraogi, MD, Keynote Capital, tells ET Now about the possible effects China's elimination of VAT rebate could have on the metals pack.

Most of the steel stocks, there is news coming in that China's Ministry of Finance has eliminated the VAT rebate on certain expert products. Would this provide a boost and in terms of the metals pack if you are bullish on any of the counters?

Suraj Saraogi: Metals in the short run have not been doing too well if you see the LME index is going in and things like that. So valuations are definitely attractive in the metal pack today also. You have a couple of the midcap companies which are still available in the single digit PE multiples, but obviously it is a commodity theory. So may not be that attractive at these market levels. So I would want to wait for a correction and then add metals pack also in my portfolio.

Would you be bullish on Murli Industries?

Suraj Saraogi: I do not track this stock, so I would not be able to comment on this stock specifically. But again going forward with the economy the way it is, the midcap cement companies, again valuations as you saw about a couple of years back, all the midcap cement companies took the valuations. They skyrocketed because people started talking about valuations on a per tonne kind of capacity basis and that is where acquisition story started coming up.

So even at these levels, the midcap cement companies look attractive to me.