March 2025's Middle Eastern Penny Stocks With Promising Fundamentals

Amidst mixed performances in Middle Eastern markets, with Saudi Arabia's bourse extending losses due to lackluster earnings and Egypt experiencing gains from upbeat corporate results, investors are increasingly exploring diverse opportunities. Penny stocks, while a somewhat outdated term, still represent an intriguing area for investment by offering potential growth at lower price points. In this article, we explore several penny stocks that combine strong financial foundations with the potential to deliver impressive returns.

Top 10 Penny Stocks In The Middle East

Name	Share Price	Market Cap	Financial Health Rating
Alarum Technologies (TASE:ALAR)	₪2.347	₪162.74M	★★★★★★
Oil Refineries (TASE:ORL)	₪1.048	₪3.26B	★★★★★★
Thob Al Aseel (SASE:4012)	SAR4.15	SAR1.66B	★★★★★★
Tgi Infrastructures (TASE:TGI)	₪2.323	₪172.7M	★★★★★☆
Yesil Yapi Endüstrisi (IBSE:YYAPI)	TRY1.44	TRY1.23B	★★★★★☆
Big Tech 50 R&D-Limited Partnership (TASE:BIGT)	₪1.577	₪16.73M	★★★★★★
Hub Girisim Sermayesi Yatirim Ortakligi (IBSE:HUBVC)	TRY1.92	TRY537.6M	★★★★★★
Dubai Investments PJSC (DFM:DIC)	AED2.26	AED9.52B	★★★★★☆
Peninsula Group (TASE:PEN)	₪2.399	₪533.56M	★★★★☆☆
Orad (TASE:ORAD)	₪0.78	₪72.78M	★★★★★★

Click here to see the full list of 93 stocks from our Middle Eastern Penny Stocks screener.

Let's explore several standout options from the results in the screener.

Commercial Bank International P.S.C (ADX:CBI)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Commercial Bank International P.S.C. offers a range of banking products and services to individuals and businesses both in the United Arab Emirates and internationally, with a market capitalization of AED1.40 billion.

Operations: The company's revenue is primarily derived from its Wholesale Banking segment at AED301.08 million, followed by Real Estate at AED188.80 million, Retail Banking at AED61.32 million, and Treasury operations contributing AED43.23 million.

Market Cap: AED1.4B

Commercial Bank International P.S.C. offers a diverse revenue stream, primarily from its Wholesale Banking segment (AED301.08 million), followed by Real Estate and Retail Banking. Despite a high level of bad loans (15%), the bank maintains an appropriate Loans to Assets ratio of 69% and uses low-risk funding sources, with 87% liabilities from customer deposits. Its Price-To-Earnings ratio is favorable at 8x compared to the AE market average of 13.2x, although share price volatility remains high. Recent earnings reports show net income growth to AED201.18 million for 2024, reflecting stable financial performance amidst challenges in profit margins and loan quality management.

• Take a closer look at Commercial Bank International P.S.C's potential here in our financial health report.
• Understand Commercial Bank International P.S.C's track record by examining our performance history report.

Mega Polietilen Köpük Sanayi ve Ticaret Anonim Sirketi (IBSE:MEGAP)

Simply Wall St Financial Health Rating: ★★★★☆☆

Overview: Mega Polietilen Köpük Sanayi ve Ticaret Anonim Sirketi is a Turkish company specializing in the production and sale of foam sheets, with a market capitalization of TRY622.50 million.

Operations: Mega Polietilen Köpük Sanayi ve Ticaret Anonim Sirketi has not reported any specific revenue segments.

Market Cap: TRY622.5M

Mega Polietilen Köpük Sanayi ve Ticaret Anonim Sirketi has demonstrated significant earnings growth, with a 96.3% increase over the past year, surpassing its five-year average of 58.5% annually. The company reported sales of TRY12,170.73 million for 2024, up from TRY5,900.24 million in the previous year, while net income rose to TRY484.94 million from TRY356.64 million. Despite a lower net profit margin (4%) compared to last year (6%), its debt levels remain satisfactory with a net debt to equity ratio of 36.1%. The Price-To-Earnings ratio is attractive at 1.3x against the TR market's average of 16x.

• Get an in-depth perspective on Mega Polietilen Köpük Sanayi ve Ticaret Anonim Sirketi's performance by reading our balance sheet health report here.
• Explore historical data to track Mega Polietilen Köpük Sanayi ve Ticaret Anonim Sirketi's performance over time in our past results report.

Söktas Tekstil Sanayi Ve Ticaret (IBSE:SKTAS)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Söktas Tekstil Sanayi Ve Ticaret A.S. operates in the textile and dairy farming sectors both in Turkey and internationally, with a market cap of TRY985.68 million.

Operations: The company generates revenue from two main segments: Textile, contributing TRY1.18 billion, and Dairy, with a revenue of TRY54.95 million.

Market Cap: TRY985.68M

Söktas Tekstil Sanayi Ve Ticaret A.S. faces challenges as it remains unprofitable, with losses increasing by 45.1% annually over the past five years. Despite a satisfactory net debt to equity ratio of 37.8%, short-term liabilities exceed short-term assets, indicating liquidity concerns. Recent earnings reports show declining sales and a shift from net income to significant losses, with TRY359.93 million in third-quarter sales compared to TRY530.28 million last year and a net loss of TRY201.21 million from previous profits of TRY133.4 million. However, the company maintains a cash runway exceeding three years due to positive free cash flow.

• Click here to discover the nuances of Söktas Tekstil Sanayi Ve Ticaret with our detailed analytical financial health report.
• Gain insights into Söktas Tekstil Sanayi Ve Ticaret's past trends and performance with our report on the company's historical track record.

Key Takeaways

• Take a closer look at our Middle Eastern Penny Stocks list of 93 companies by clicking here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Searching for a Fresh Perspective?

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• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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