Tondo Smart Ltd. (TNDO) — Bakshi Finance

Market Cap

₪176M

~15M diluted shares

Revenue 2025

₪22.2M

+30% YoY

Gross Margin

44.5%

Improved from 35.5% in 2023

Net Loss

(₪4.6M)

Material improvement Y/Y

Equity

(₪5.7M)

Negative — red flag

P/S

7.9x

P/E not applicable (loss)

1 Company Profile

Tondo Smart (TNDO) is a small Israeli company providing smart-lighting and IoT solutions for cities, traded on the Tel Aviv Stock Exchange. The company supplies street-lighting management, energy-saving and air-quality-sensing systems to municipalities and institutional bodies. Tondo is at an early commercialisation stage — 2025 revenue: NIS 22.2M (+30%), gross margin improved to 44.5%. However, the company is still reporting a net loss (NIS 4.6M) and has negative equity (-NIS 5.7M) — a financial red flag. Market capitalisation: NIS 176M. P/S ratio is elevated (7.9×) — embedding significant growth expectations.

Activity	Feature
Smart Street Lighting	Core product
Air Quality Sensors	Urban-IoT expansion
Energy Management	חיסכון אנרגטי לעיריות
Smart City Software	פלטפורמת ניהול

Source: 2025 Annual Report

2 Key Financial Observations

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

ביצועים 2025

Metric	Value
Revenue	₪22.2M
Gross Margin	44.5%
Net Loss	(₪4.6M)
Market Cap	₪176M
Shareholders’ Equity	(₪5.7M)

מדדים נוספים

Metric	Value
P/S	7.9x
צמיחת הכנסות	+30%
שיפור GM	+9pp מ-2023
Cash position	דורש אימות

Missing data: מצב מזומנים מדויק, רמת חוב, חוזים פתוחים עם עיריות, runway.

מדדים פיננסיים

פילוח פעילות

שולי רווח

רווחיות

מגמה

מדד נוסף

3 Industry & Competitive Context

Smart cities + IoT. שוק צומח אבל פרגמנטרי. מתחרה גלובלי + מקומי. מחזור מכירות ארוך לעיריות.

מתחרה	טיקר	הבדל
Itron	ITRI	מתחרה גלובלי גדול
Cisco IoT	CSCO	תחרות בפלטפורמה
Signify (Philips)	LIGHT.AS	מתחרה גלובלי בתאורה
Bee Smart City	—	מתחרים מקומיים

4 Risk Factors

סיכון	הקשר
Equity שלילי	-₪5.7M — דגל אדום מבני
Cash burn	חברה בהפסד — runway קצר?
מחזור מכירות ארוך	עיריות — תהליכי רכש איטיים
תחרות גלובלית	Itron, Signify — שחקנים גדולים

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

+30% — from which source?

Profitability

GM of 44.5% improving — sustainable?

Leverage

Negative equity — is an equity raise required?

Competitive Position

Against Itron — a distinctive niche?

Management Quality

Shipping versus sales execution.

Business Complexity

B2G is complex — long sales cycles.

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:

A large contract with a major municipality, GM to 50%+, equity returns to positive, positive EBITDA.

Base Scenario — if current trends continue:

Revenue grows 25-35%, GM stable at 45%, loss narrows but does not reach break-even.

Adverse Scenario — if the following risks materialise:

Sales cycle lengthens, urgent equity raise required, material shareholder dilution.

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

Tondo is a small Israeli smart-cities company with a financial red flag. The idea behind analysing Tondo is not "is the technology good" (there is improvement — GM 44%), but rather "will the company successfully raise capital before cash runs out, and on what terms — with material shareholder dilution or not?" Negative equity is a structural risk.

The critical variables: (a) cash position and burn rate; (b) open municipal contracts; (c) GM trajectory.

Where the analysis may go wrong: First error — valuing on a P/S of 7.9× without examining runway. Second error — assuming municipal sales cycles are fast. Third error — underestimating competition from Itron.

Professional analysis addresses three things: (a) balance sheet and equity; (b) B2G customers and sales cycles; (c) burn rate versus cash.

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	טונדו — דוח Annual 2025	March 2026	Official — TASE
2	maya.tase.co.il	April 2026	Official — Stock Exchange

Missing: מצב מזומנים מדויק, רמת חוב, חוזים פתוחים עם עיריות, runway.

Tondo Smart Ltd.

ביצועים 2025

מדדים נוספים

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