In recent times, most Gulf stock markets have remained flat, with oil prices experiencing a decline as investors anticipate data on U.S. crude inventories amidst concerns of rising supply. Amidst this backdrop of steady global markets and easing trade tensions, identifying promising stocks in the Middle East requires a keen eye for companies that demonstrate resilience and potential for growth despite broader market stagnation.
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% | ★★★★★★ |
| MOBI Industry | 6.50% | 5.60% | 24.00% | ★★★★★★ |
| Baazeem Trading | 6.93% | -1.88% | -2.38% | ★★★★★★ |
| Nofoth Food Products | NA | 14.41% | 31.88% | ★★★★★★ |
| Sure Global Tech | NA | 11.95% | 18.65% | ★★★★★★ |
| Saudi Azm for Communication and Information Technology | 2.07% | 16.18% | 21.11% | ★★★★★★ |
| Union Coop | 3.73% | -4.15% | -13.19% | ★★★★★☆ |
| Keir International | 23.18% | 49.21% | -17.98% | ★★★★★☆ |
| Amanat Holdings PJSC | 12.00% | 34.39% | -9.61% | ★★★★★☆ |
| Waja | 23.81% | 98.44% | 14.54% | ★★★★☆☆ |
We're going to check out a few of the best picks from our screener tool.
Lila Kagit Sanayi Ve Ticaret (IBSE:LILAK)
Simply Wall St Value Rating: ★★★★★☆
Overview: Lila Kagit Sanayi Ve Ticaret A.S. is a company that produces and sells roll papers primarily in Turkey with a market capitalization of TRY13.66 billion.
Operations: Lila Kagit generates revenue from its Paper & Paper Products segment, amounting to TRY12.52 billion.
Lila Kagit Sanayi Ve Ticaret, a nimble player in the household products sector, has demonstrated impressive earnings growth of 262.7% over the past year, outpacing the industry average of 9.4%. Despite a revenue dip by 7.3%, its price-to-earnings ratio stands at an attractive 11.6x compared to the TR market's 19x, indicating potential value for investors. The company earns more interest than it pays and boasts high-quality earnings with more cash than total debt, painting a robust financial picture amidst recent challenges in revenue performance.
Middle East Pharmaceutical Industries (SASE:4016)
Simply Wall St Value Rating: ★★★★★☆
Overview: Middle East Pharmaceutical Industries Company focuses on the research, development, manufacture, and marketing of generic medicines and pharmaceutical preparations both in Saudi Arabia and internationally, with a market cap of SAR2.58 billion.
Operations: Revenue streams for Middle East Pharmaceutical Industries include export customers (SAR50.03 million), public customers (SAR75.68 million), and private customers (SAR268.29 million).
Middle East Pharmaceutical Industries, a smaller player in the region, has shown robust growth with its recent earnings report. Sales for Q1 2025 reached SAR 97.36 million, up from SAR 75.82 million the previous year, while net income nearly doubled to SAR 19.4 million from SAR 9.37 million. The company's net debt to equity ratio stands at a satisfactory 11.6%, indicating prudent financial management. Additionally, earnings growth of 21% outpaced the industry average of around 7%. With high-quality past earnings and strong EBIT coverage of interest payments (24x), it seems well-positioned for continued success in its market segment.
Nayifat Finance (SASE:4081)
Simply Wall St Value Rating: ★★★★★☆
Overview: Nayifat Finance Company is a non-banking finance provider offering cash financing solutions to consumers, SMEs, individuals, and corporates in Saudi Arabia with a market capitalization of SAR1.57 billion.
Operations: Nayifat Finance generates revenue primarily through personal financing (SAR258.30 million) and SME financing (SAR43.05 million), with a smaller contribution from Islamic credit cards (SAR1.73 million).
Nayifat Finance, a promising player in the Middle East's financial landscape, has shown notable performance with its net income rising to SAR 23.55 million for Q1 2025 from SAR 17.18 million a year prior. This growth is backed by an impressive earnings surge of 87.4% over the past year, outpacing the Consumer Finance industry's average of 10.6%. The company’s debt to equity ratio has significantly improved from 91% to a more manageable 34.6% over five years, indicating prudent financial management. With a P/E ratio of just 11.5x against the SA market's average of 21.9x, Nayifat offers attractive valuation prospects for investors seeking value amidst emerging markets.
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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.
Valuation is complex, but we're here to simplify it.
Discover if Lila Kagit Sanayi Ve Ticaret might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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