Monbat

With 27% CAGR of revenue and 16% average EBITDA margin over the last 10 years, Monbat outperforms the global automotive battery market by reaping profits from its fully integrated model and well diversified market presence, say ELANA Trading analysts in the latest equity research report on the company. They see Monbat on a path to unlock new pockets of efficiency to further improve profitability.

New tech endeavors to drive growth

Batteries volume growth leveraging on Monbat’s diverse customer base, flexible material sourcing and low indebtedness to be growth drivers in short- to midterm. Investments in new energy technologies is a key driver in the long term.
So far Monbat has invested in a LED light bulb joint venture – Octa Light. The latter is yet to prove its operational efficiency and sustain mass market production for home and commercial use. In 2014, Octa posted 34% y/y rise in sales to BGN 1.5m with first mass market initiative launched in 2015.

About Monbat

Monbat AD is the largest lead-acid battery producer in Bulgaria, with more than 60-year history and traditions in lead acid batteries manufacturing. The Group is among the fastest growing battery producers in South East Europe successfully rivaling Romanian and Turkey peers, Rombat and Mutlu, respectively.
The Company manufactures and distributes lead-acid batteries for civil (automotive, telecom, industrial, marine, sports & leisure sectors) and military application. It is fully vertically integrated with two production sites in Bulgaria and three scrap batteries recycling facilities in Bulgaria, Romania and Serbia. It also invests in growth businesses such as LED lighting bulbs.

Read the latest equity research report by ELANA Trading analysts