As Gulf markets show gains ahead of earnings announcements, investors are closely watching for opportunities amid ongoing trade uncertainties and oil price volatility. In this context, penny stocks—often seen as smaller or newer companies—can offer intriguing possibilities when backed by solid financials. Despite being considered an outdated term, penny stocks remain a relevant investment area for those seeking value and growth potential in the Middle Eastern market.
Top 10 Penny Stocks In The Middle East
Name
Share Price
Market Cap
Financial Health Rating
Thob Al Aseel (SASE:4012)
SAR4.07
SAR1.63B
★★★★★★
Dna Group (T.R.) (TASE:DNA)
₪1.00
₪123.16M
★★★★★★
Alarum Technologies (TASE:ALAR)
₪2.611
₪182.68M
★★★★★★
Oil Refineries (TASE:ORL)
₪0.915
₪2.84B
★★★★★☆
Tgi Infrastructures (TASE:TGI)
₪2.202
₪163.7M
★★★★★★
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
AED0.709
AED431.25M
★★★★★★
Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR)
Overview: Gulf Cement Company P.S.C. produces and markets various types of cement in the United Arab Emirates and internationally, with a market cap of AED291.08 million.
Operations: The company generates revenue of AED480.82 million from its manufacturing operations.
Market Cap: AED291.08M
Gulf Cement Company P.S.C., with a market cap of AED291.08 million, has been reducing its losses at a rate of 28.8% annually over the past five years, despite being unprofitable. The company maintains a satisfactory net debt to equity ratio of 4.6% and has sufficient cash runway for over three years with positive free cash flow. Recent amendments to its Articles allow non-citizens on the board, potentially broadening governance perspectives. A proposed acquisition by Buzzi S.p.A., valuing shares at AED0.56 each, underscores investor interest but requires regulatory approval and shareholder acceptance to proceed.
Overview: Thob Al Aseel Company is involved in the development, import, export, wholesale, and retail of fabrics and readymade clothes with a market cap of SAR1.63 billion.
Operations: The company generates revenue from two main segments: Thobs, contributing SAR398.77 million, and Fabrics, accounting for SAR123.70 million.
Market Cap: SAR1.63B
Thob Al Aseel, with a market cap of SAR1.63 billion, demonstrates financial stability through its debt-free status and strong short-term asset position of SAR668.8 million against liabilities. The company reported a net income increase to SAR83.9 million for 2024, reflecting improved profit margins from 14.5% to 16.1%. Despite trading below estimated fair value by 40.2%, the dividend yield of 4.65% is not well covered by earnings, raising sustainability concerns. While earnings growth accelerated last year at 9.1%, it lagged behind the luxury industry's pace, and management's inexperience may impact strategic direction.
Overview: Tarya Israel Ltd, with a market cap of ₪167.73 million, operates an internet platform in Israel through its subsidiaries.
Operations: The company generates revenue primarily from its Credit Brokerage segment, which accounts for ₪52.14 million, and its Credit Provision segment, contributing ₪0.75 million.
Market Cap: ₪167.73M
Tarya Israel Ltd, with a market cap of ₪167.73 million, has shown significant financial improvement by becoming profitable in the last year, reporting a net income of ₪10.12 million compared to a previous loss. The company's short-term assets comfortably cover both its short and long-term liabilities, and it holds more cash than total debt. Despite trading well below estimated fair value, Tarya's outstanding return on equity at 42.1% and high-quality earnings are noteworthy strengths. However, its share price remains highly volatile and the board's limited experience could pose challenges for strategic decisions moving forward.
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.
Companies discussed in this article include ADX:GCEM SASE:4012 and TASE:TRA.
This article was originally published by Simply Wall St.
