Baladi Agro Ltd. (BALADI-AGRO)

Market Cap

₪2.4B

Annual total return +152%

Revenue 2025

₪1,510M

+22.5% Y/Y

EBITDA

₪206M

13.6% margin

Net Income

₪127M

8.4% margin / +30%

Operating Cash Flow

₪193M

from (NIS 19M) in 2024

ROE

~26%

Equity 49% of balance sheet

1 Company Profile

Baladi Agro Industries (BLDI) is a leading Israeli food company in the Arab-sector market, traded on the Tel Aviv Stock Exchange. The company specialises in the import, production and distribution of food products to retail chains, neighbourhood stores and restaurants, operating an automated logistics centre in Timurim. Baladi delivered a +152% total return in 2025 — a dramatic improvement in operating cash flow (from -NIS 19M to NIS 193M). 2025 revenue: NIS 1.51B (+22.5%). EBITDA margin 13.6%. Market capitalisation: NIS 2.4B. Key observation: ROE of 26% with equity representing 49% of the balance sheet — a strong balance sheet alongside high profitability.

Activity	Feature
Food-product imports	Staple goods and raw materials
Retail distribution	Shufersal, Rami Levy, Tiv Tam
Distribution to Arab sector	Distinctive niche
Automated logistics centre	Timurim — logistical efficiency

Source: 2025 Annual Report

2 Key Financial Observations

This summary is not a recommendation. It is a factual list of key financial metrics.

2025 Performance

Metric	Value
Revenue	₪1,510M
EBITDA	₪206M
Net Income	₪127M
Operating Cash Flow	₪193M
Shareholders’ Equity	₪493M

Additional Metrics

Metric	Value
P/E	19x
EV/EBITDA	~12.8x
Dividend Yield	1.7%
Employees	329

Missing data: Customer breakdown, share of Arab-sector vs general sales, raw-material exposure.

Financial Metrics

Activity Breakdown

EBITDA & Net Margin (%)

Net Income (NIS M)

Revenue (NIS M)

Operating Cash Flow (NIS M)

3 Industry & Competitive Context

Israeli food / distribution. Competitive sector. Baladi is distinctive in the Arab-sector market. Competitors: Strauss, Osem, import companies.

Competitor	Ticker	Differentiation
Strauss	STRS	Israeli food giant
Osem / Nestle	—	Import competitor
Neto M.E.	NTCH	Food holding company
Shufersal Private Label	—	Retail-chain competition

4 Risk Factors

Risk	Context
Input-cost dependency	Imports — exposed to USD and commodities
Retail-chain competition	Private label erodes profit margins
Demographic shift	Reliance on Arab-sector demand
Thin gross margins	Food distribution = inherently thin margins

5 Analytical Lens — The Questions We Ask

In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" At Bakshi Finance, every analysis passes through six lenses.

This framework is intended to structure analysis, not to produce an investment conclusion.

Growth

+22.5% — sustainable or one-off?

Profitability

EBITDA 13.6% — strong for food. The trend?

Leverage

Equity 49% — strong balance sheet

Competitive Position

Against Strauss + private label.

Management Quality

Dramatic 2025 improvement — sustainable?

Business Complexity

Import + distribution + a unique segment.

6 Scenario Framework

Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes.
These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.

Constructive Scenario — if the following conditions hold:

Market-share gains in the Arab-sector market, expansion into new retail chains, EBITDA margin maintained above 13%.

Base Scenario — if current trends continue:

Revenue grows 8-12%, EBITDA margin 12-14%, net income grows gradually.

Adverse Scenario — if the following risks materialise:

Private-label competition pressures pricing, input costs rise, sector weakness.

Scenarios describe conditions, not forecasts. There is no preferred direction and no probability assessment expressed in this framework.

7 How to Think About This Company

Baladi is an Israeli food company with a distinctive niche in the Arab-sector market. The idea behind analysing Baladi is not "is this a good business" (yes — material improvement), but rather "is the 2025 jump (cash flow from negative to positive, +152% total return) the result of structural improvement or special circumstances?"

The critical variables: (a) EBITDA margin — is 13.6% sustainable? (b) revenue-growth pace — will 20%+ continue? (c) commodity exposure — USD, wheat, oil.

Where the analysis may go wrong: First error — assuming the 152% total return repeats (it is an anomaly). Second error — ignoring private-label competition from retail chains. Third error — valuing on 26% ROE without understanding the source.

Professional analysis addresses three things: (a) decomposing the cash-flow improvement; (b) customer diversification; (c) raw-material sensitivity.

The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.

8 Sources & Data

#	Source	Date	Type
1	Baladi — Annual Report 2025	March 2026	Official — TASE
2	maya.tase.co.il	April 2026	Official — Stock Exchange

Missing: Customer breakdown, share of Arab-sector vs general sales, raw-material exposure.

Baladi Agro Industries Ltd.

2025 Performance

Additional Metrics

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