The Middle East stock markets have been experiencing a notable upswing, with Dubai's main share index reaching fresh record highs driven by strategic business agreements and a burgeoning focus on advanced technologies. Amidst this dynamic environment, identifying promising stocks often involves seeking out companies that not only capitalize on regional growth opportunities but also demonstrate resilience in the face of global economic shifts.
Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Alf Meem Yaa for Medical Supplies and Equipment | NA | 17.03% | 18.37% | ★★★★★★ |
| Kerevitas Gida Sanayi ve Ticaret | 42.60% | 43.79% | 39.15% | ★★★★★★ |
| Baazeem Trading | 6.93% | -1.88% | -2.38% | ★★★★★★ |
| Sure Global Tech | NA | 11.95% | 18.65% | ★★★★★★ |
| Vakif Gayrimenkul Yatirim Ortakligi | 0.00% | 46.96% | 55.76% | ★★★★★★ |
| Alfa Solar Enerji Sanayi ve Ticaret | 38.29% | 5.19% | -13.40% | ★★★★★☆ |
| Gür-Sel Turizm Tasimacilik ve Servis Ticaret | 8.11% | 55.10% | 73.88% | ★★★★★☆ |
| Arsan Tekstil Ticaret ve Sanayi Anonim Sirketi | 0.68% | 12.49% | 49.63% | ★★★★★☆ |
| National Corporation for Tourism and Hotels | 19.25% | 0.67% | 4.89% | ★★★★☆☆ |
| Waja | 23.81% | 98.44% | 14.54% | ★★★★☆☆ |
Let's uncover some gems from our specialized screener.
Gulf Pharmaceutical Industries P.S.C (ADX:JULPHAR)
Simply Wall St Value Rating: ★★★★★☆
Overview: Gulf Pharmaceutical Industries P.S.C. operates in the pharmaceutical sector by manufacturing and selling medicines, drugs, and various medical compounds across the UAE, GCC countries, and internationally, with a market cap of AED1.58 billion.
Operations: JULPHAR generates revenue primarily from its manufacturing segment, which accounts for AED864.90 million. The company also has a Planet segment contributing AED732.90 million to its revenue stream.
Gulf Pharmaceutical Industries, a relatively small player in the Middle East market, has shown significant strides recently. The company reported a remarkable increase in net income for Q1 2025 at AED 140.9 million from just AED 1.9 million the previous year, reflecting its turnaround to profitability. With high-quality earnings and a debt to equity ratio reduced from 117% to 55.9% over five years, it seems financially healthier now. However, interest coverage remains weak at only 1.4 times EBIT, indicating potential challenges if not addressed soon despite trading near fair value estimates and having positive free cash flow.
Selçuk Ecza Deposu Ticaret ve Sanayi (IBSE:SELEC)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Selçuk Ecza Deposu Ticaret ve Sanayi A.S., along with its subsidiary, functions as a pharmacy depot in Turkey and has a market capitalization of TRY40.74 billion.
Operations: SELEC generates revenue primarily from its wholesale drugs segment, amounting to TRY128.62 billion. The company's financial performance is influenced by its cost structure and operational efficiencies, which are reflected in its net profit margin trends over time.
Selçuk Ecza Deposu, a notable player in the healthcare sector, has shown impressive earnings growth of 538.8% over the past year, outpacing the industry average of 10.4%. Despite a debt to equity ratio rise from 8% to 33.7% in five years, it holds more cash than total debt, indicating financial resilience. However, free cash flow remains negative. The company reported net income of TRY 2 billion for the last fiscal year compared to TRY 322 million previously, with basic earnings per share jumping from TRY 0.52 to TRY 3.32—reflecting robust profitability despite declining sales figures.
Edarat Communication and Information Technology (SASE:9557)
Simply Wall St Value Rating: ★★★★★☆
Overview: Edarat Communication and Information Technology Co. operates in the technology sector, providing cloud services and data center engineering solutions, with a market capitalization of SAR1.37 billion.
Operations: The company's revenue is primarily derived from cloud services (SAR38.44 million) and data center engineering services (SAR47.55 million).
Edarat Communication and Information Technology, a relatively small player in the IT sector, has demonstrated impressive earnings growth of 41.7% over the past year, outpacing the industry average of 26.2%. This growth is underpinned by high-quality non-cash earnings and robust debt management, with cash exceeding total debt levels. The company recently secured an SAR 11.5 million contract with Saudi Arabian Mining Co., which is expected to positively impact its financials from Q2 2025 onwards. With interest payments well-covered at nearly 60 times EBIT, Edarat seems poised for continued stability in its operations.
Seize The Opportunity
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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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