As Gulf bourses face downward pressure from lower oil prices and mixed corporate earnings, investors are reevaluating their strategies amidst uncertain market conditions. Penny stocks, though often associated with speculative investing, remain a relevant area for those seeking growth opportunities at lower price points. With strong balance sheets and solid fundamentals, certain Middle Eastern penny stocks stand out as potential hidden gems in the current economic landscape.
Name
Share Price
Market Cap
Financial Health Rating
Big Tech 50 R&D-Limited Partnership (TASE:BIGT)
₪1.414
₪15M
★★★★★★
Thob Al Aseel (SASE:4012)
SAR3.74
SAR1.5B
★★★★★★
Mega Polietilen Köpük Sanayi ve Ticaret Anonim Sirketi (IBSE:MEGAP)
TRY4.50
TRY1.24B
★★★★★☆
E7 Group PJSC (ADX:E7)
AED1.48
AED2.94B
★★★★★★
Katmerciler Arac Üstü Ekipman Sanayi ve Ticaret (IBSE:KATMR)
TRY3.09
TRY3.33B
★★★★★☆
Dubai National Insurance & Reinsurance (P.S.C.) (DFM:DNIR)
AED3.45
AED392.7M
★★★★★★
Dubai Investments PJSC (DFM:DIC)
AED2.90
AED12.25B
★★★★☆☆
Union Properties (DFM:UPP)
AED0.875
AED3.71B
★★★★★☆
Sharjah Cement and Industrial Development (PJSC) (ADX:SCIDC)
Here we highlight a subset of our preferred stocks from the screener.
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Formet Metal ve Cam Sanayi A.S. is a Turkish company that manufactures and sells steel doors, with a market cap of TRY2.02 billion.
Operations: Formet Metal ve Cam Sanayi generates revenue primarily from its Building Products segment, amounting to TRY631.26 million.
Market Cap: TRY2.02B
Formet Metal ve Cam Sanayi has shown financial improvement, becoming profitable recently with a market cap of TRY2.02 billion and revenue from its Building Products segment at TRY631.26 million. The company has reduced its debt to equity ratio significantly over the past five years, now at a satisfactory 23.4%. Short-term assets exceed both short- and long-term liabilities, indicating strong liquidity. However, the management team lacks seasoned experience, and earnings were impacted by a large one-off gain of TRY20.1 million in the last year. The stock remains highly volatile compared to most Turkish stocks despite stable weekly volatility recently.
IBSE:FORMT Revenue & Expenses Breakdown as at Aug 2025
Simply Wall St Financial Health Rating: ★★★★☆☆
Overview: Ihlas Holding A.S. operates in construction and real estate, media, manufacturing and trading, as well as healthcare and education sectors in Turkey and internationally, with a market cap of TRY5.62 billion.
Operations: The company’s revenue is primarily derived from its marketing segment at TRY4.51 billion, followed by media at TRY2.23 billion and construction at TRY1.01 billion.
Market Cap: TRY5.62B
Ihlas Holding A.S., with a market cap of TRY5.62 billion, operates across multiple sectors including media and construction. Despite being unprofitable, the company has managed to reduce its losses by 9.6% annually over five years and holds more cash than total debt, showcasing financial prudence. The debt to equity ratio has significantly improved from 34.5% to 4.8% over five years, although operating cash flow remains negative, affecting debt coverage capability. Short-term assets of TRY16.1 billion comfortably cover liabilities, indicating strong liquidity despite a volatile share price and high weekly volatility compared to other Turkish stocks.
IBSE:IHLAS Revenue & Expenses Breakdown as at Aug 2025
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Pulsenmore Ltd. provides self-scan ultrasound devices for remote clinical diagnosis and screening, with a market cap of ₪159.45 million.
Operations: The company generates revenue from its X-Ray Equipment segment, amounting to ₪9.66 million.
Market Cap: ₪159.45M
Pulsenmore Ltd., with a market cap of ₪159.45 million, offers self-scan ultrasound devices but remains pre-revenue, generating limited income from its X-Ray Equipment segment. The company is debt-free and has sufficient cash runway for over a year, though it faces challenges with negative return on equity and increasing losses at 30.2% annually over five years. Despite an experienced management team and board, Pulsenmore’s share price exhibits high volatility. Recent developments include the delisting of its common shares from OTC Equity due to inactivity, which may impact investor sentiment further in the penny stock landscape.
TASE:PULS Financial Position Analysis as at Aug 2025
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 IBSE:FORMT IBSE:IHLAS and TASE:PULS.
This article was originally published by Simply Wall St.
