Cashing in on battery power
METAIR MOSTLY makes batteries, but not your normal battery – excellent stop/start technology batteries. The recent Romanian acquisition (Rombat) has been supplemented with a €16m facility, of which it got state grants of €8m, in order to get its stop/start battaries more widely distributed in Europe.
Locally the company sells the normal battery that goes into new cars via First National Battery, with most local vehicle manufacturers buying their batteries from Metair.
The new stop/start sales into Europe have huge potential as they are environmentally more friendly, and reports suggest the EU may well make the stop/start concept a requirement for all new vehicles sold in the EU, which will ensure huge sales for Rombat.
With a number of other vehicle and retail products, a dividend yield of over 2% and a p:e of just over 11 times, the stock is not expensive and has great potential.