UPDATE 1-BYD Electronic shares fall after charger recall

* Shares drop more than 4 pct over Nokia recall of chargers

* Could tarnish BYD Electronic's reputation - Credit Suisse (Updates share price, adds broker's comment)

HONG KONG, Nov 10 (Reuters) - Shares in BYD Electronic (0285.HK), the battery making arm of BYD Co (1211.HK), fell more than 4 percent on Tuesday after Nokia (NOK1V.HE) said it would replace 14 million cellphone chargers made by the Chinese company.

The stock fell 4.4 percent to a low of HK$6.70 shortly after the market opened, underperforming a 1.3 percent gain by the benchmark Hang Seng Index .HSI.

Nokia said BYD would cover the costs of recalling the chargers, which it says could give users an electric shock. [ID:nL9382553]

Credit Suisse downgraded the stock to "underperform" from "neutral".

Although the recall would have a limited financial impact on BYD Electronic, it would cast doubt on the company's reputation and ability to manufacture phone chargers, it said in a research report.

The charger business is estimated to contribute only about 5-6 percent to the company's top line this year.

The stock has risen 62 percent since the start of October, significantly outperforming the market and its rivals.

"We believe such a gain is unwarranted and that investors should use this opportunity to take profit," Credit Suisse said.

Shares of BYD Co, which have soared more than eightfold since it said billionaire investor Warren Buffet would buy a stake in the company, were unaffected by the latest news, up 1.2 percent in early trade in Hong Kong. (Reporting by Alison Leung; Editing by Chris Lewis)