Ramco Cements shares surge; CLSA starts coverage with "buy"

Reuters Market Eye - Shares in Ramco Cements Ltd up as much as 12.4 percent to 225 rupees, its highest since July 2013, after CLSA initiates coverage on the stock with a "buy" rating and a price target of 260 rupees.

CLSA says Ramco "among the largest and the most efficient cement players in south India," and benefitting from improving demand in its region.

CLSA adds recovering cement prices, along with debt levels at Ramco that have already peaked, also act as catalyst for the shares.

Shares in Ramco up 6.7 percent to 213.50 rupees at 2:59 p.m.

(Reporting by Indulal PM)