Exide extends slump post-results

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SummaryBattery maker Exide Industries shares down 3 per cent

* 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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