Neto Malinda Trading
Neto Malinda Trading is a producer, importer, marketer, and distributor of kosher food and household consumer products.
- Public company
- Kiryat Malachi, ILIsrael
Neto Malinda Trading is a producer, importer, marketer, and distributor of kosher food and household consumer products.
What is the investment case, and what must be true for it to hold?
The case for Neto Malinda Trading is that its share price has fallen behind both its earnings growth and an independent estimate of what the shares are worth, with shares down 17% over 90 days to ₪117 against an estimated fair value of ₪151 while revenue grew 9.2% over three years and earnings per share grew 37%.
Neto Malinda Trading pays a ₪0.86 dividend yielding 4.2%, above the industry average of 2.9%, payable on 23 September 2026. Earnings cover the dividend at a 26% payout ratio, but the company has no free cash flows available and may be using cash reserves or debt to make the payment.
Two suits followed the suspected embezzlement, one in a labour court and one in the Jerusalem Magistrates Court. Neto Malinda Trading dismissed the sales agent it had employed for 13 years and is demanding about NIS 330,000 it says he took by fraud.
Which risks could break the thesis, and what would warn of them?
Neto Malinda Trading pays its dividend from cash reserves or borrowing instead of free cash flow, although earnings cover the payout at a 26% ratio and the company generates no free cash flow.
Suspected embezzlement at Neto Malinda Trading prompted two suits, one in a labour court and another in the Jerusalem Magistrates Court. The company dismissed a sales agent it had employed for 13 years and is seeking about NIS 330,000 it says he obtained by fraud.
What does the product do for its buyer, and how is it delivered?
Neto Malinda Trading organizes its range so that a kosher household obtains both food staples and non-food household supplies from one supplier rather than many. The group imports, produces, markets, and distributes kosher food products alongside household consumer products other than food.
Its meat brand imports, buys local produce, and then processes, distributes, and markets frozen, chilled, fresh, and processed meat. The fish brand handles frozen, fresh, live, and smoked fish across import, processing, distribution, and marketing.
Its canned goods and grocery brand produces canned tuna and imports canned vegetables, fruits, and grocery products via a subsidiary. The frozen bakery line makes pizzas, bourekas, malawach, and jachnun, along with pastels.
Its management and logistics center, plus some of its plants, are located in the Kiryat Malachi Industrial Zone.