Exide extends slump post-results
Agencies: Oct 22 2012, 12:39 IST
* Battery maker Exide Industries shares down 3 per cent, having already dropped 8.9 per cent on Friday, after posting July-September profit that was well below expectations.
* Bank of America-Merrill Lynch downgrades the stock to 'underperform' from 'buy' and cut the target price to Rs 139 from Rs 172 in a note dated on Monday.
* The investment bank cites weaker-than-estimated EBITDA was on the back of higher sales expenses among other factors; calls it the fifth quarter in a row in which Exide's margins disappoint.
* BoA-ML says concerns on Exide's profit margin will drive a de-rating of the stock from its current PE ratio of 15 times.
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