Exploring Al Hassan Ghazi Ibrahim Shaker And 2 Other Undiscovered Gems In The Middle East

As tensions between Israel and Iran create ripples across Middle Eastern markets, many Gulf indices have recently experienced declines, reflecting investor caution amid regional instability. In such a climate, identifying stocks with strong fundamentals and resilience to geopolitical uncertainties can be crucial for investors seeking potential opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
MOBI Industry	6.50%	5.60%	24.00%	★★★★★★
Alf Meem Yaa for Medical Supplies and Equipment	NA	17.03%	18.37%	★★★★★★
Baazeem Trading	8.48%	-2.02%	-2.70%	★★★★★★
Saudi Azm for Communication and Information Technology	2.07%	16.18%	21.11%	★★★★★★
Sure Global Tech	NA	11.95%	18.65%	★★★★★★
Nofoth Food Products	NA	15.75%	27.63%	★★★★★★
National General Insurance (P.J.S.C.)	NA	14.55%	29.05%	★★★★★☆
National Corporation for Tourism and Hotels	19.25%	0.67%	4.89%	★★★★☆☆
Waja	23.81%	98.44%	14.54%	★★★★☆☆
Saudi Chemical Holding	79.49%	16.57%	44.01%	★★★★☆☆

Click here to see the full list of 220 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener.

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

Al Hassan Ghazi Ibrahim Shaker (SASE:1214)

Simply Wall St Value Rating: ★★★★★★

Overview: Al Hassan Ghazi Ibrahim Shaker Company operates in the trading, wholesale, and maintenance of spare parts, electronic equipment, household equipment, and air-conditioners across Saudi Arabia and Jordan with a market capitalization of SAR1.51 billion.

Operations: Shaker's primary revenue streams come from Home Appliances and Heating, Ventilation, and Air-Conditioning Solutions (HVAC), generating SAR339.50 million and SAR1.06 billion respectively. The company focuses on these segments within Saudi Arabia and Jordan.

Shaker, a notable player in the Middle East market, showcases steady growth with earnings increasing 45% annually over the past five years. Despite a recent dip in Q1 2025 sales to SAR 400.42 million from SAR 413.24 million last year, net income remains robust at SAR 27.21 million. The company’s debt-to-equity ratio has improved significantly from 54% to 36%, indicating prudent financial management. With a price-to-earnings ratio of 19.6x below the SA market average of 20.8x and high-quality earnings, Shaker seems well-positioned for future growth amidst industry challenges and board changes confirmed recently.

• Get an in-depth perspective on Al Hassan Ghazi Ibrahim Shaker's performance by reading our health report here.

• Gain insights into Al Hassan Ghazi Ibrahim Shaker's past trends and performance with our Past report.

Rasan Information Technology (SASE:8313)

Simply Wall St Value Rating: ★★★★★★

Overview: Rasan Information Technology Company is a financial technology firm offering insurance and financial services in Saudi Arabia, with a market capitalization of SAR6.25 billion.

Operations: The company's primary revenue streams include Tameeni - Motors, contributing SAR217.33 million, and Leasing, generating SAR133.96 million. Tameeni - Health adds SAR54.74 million to the total revenue mix.

Rasan Information Technology, a small player in the Middle East tech scene, has been making waves with its impressive earnings growth of 116% over the past year, outpacing the insurance industry's negative trend. The company stands debt-free, eliminating concerns about interest coverage and highlighting its robust financial health. With high-quality earnings and positive free cash flow evident from recent figures like US$197 million in levered free cash flow as of March 2025, Rasan is positioned for continued success. Recent board changes may impact strategic direction but don't overshadow its strong growth trajectory.

• Click here and access our complete health analysis report to understand the dynamics of Rasan Information Technology.

• Understand Rasan Information Technology's track record by examining our Past report.

Castro Model (TASE:CAST)

Simply Wall St Value Rating: ★★★★★☆

Overview: Castro Model Ltd. operates in Israel as a retailer of fashion products, home fashion, accessories, and cosmetics with a market capitalization of ₪1.16 billion.

Operations: Castro Model Ltd. generates revenue primarily from apparel fashions, contributing ₪1.47 billion, and fashion accessories in Israel, adding another ₪551.33 million. The care and cosmetics segment further supplements its income with ₪81.42 million in sales.

Castro Model, a notable player in the specialty retail sector, has demonstrated solid financial health with earnings growth of 69.7% over the past year, outpacing industry peers. The company is valued attractively with a price-to-earnings ratio of 8.8x compared to the IL market's 14.3x. Its debt management appears robust as cash exceeds total debt and interest payments are well covered by EBIT at 3.1x coverage. However, recent quarterly results showed sales rising to ILS 470.57 million while net income dipped to ILS 1.42 million from ILS 3.91 million last year, indicating potential challenges despite strong fundamentals.

• Take a closer look at Castro Model's potential here in our health report.

• Review our historical performance report to gain insights into Castro Model's's past performance.

Make It Happen

• Gain an insight into the universe of 220 Middle Eastern Undiscovered Gems With Strong Fundamentals by clicking here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
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Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• 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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