Al Raji Cooperative Insurance Company Tops Saudi Stock Market Performance

Al Raji ‍Cooperative Insurance Company (Al Raji Takaful) has emerged as the top-performing stock in the Saudi stock market, with a remarkable 184.5% increase in just 8 months.

The company’s stock closed at 202 riyals per⁤ share ​last ⁤month, outpacing nearly 5 other companies that have doubled their share prices during the same ‌period.

Financial Performance and Future Outlook

Al Raji ⁣Takaful’s⁣ financial statements⁢ reveal a ⁣significant jump in profits, with a‌ 308% increase ⁣since 2023. Analysts expect the company’s ⁤profits to grow by 46% in the current year and 36% in the next year, according to Bloomberg’s average survey of ‌analysts’ expectations.

Upgrade to Global Stock Indices

The company’s impressive performance and market share ⁢in ​Saudi Arabia⁤ have​ led to ⁢its promotion⁢ in the global ⁣stock index. FTSE has upgraded Al Raji Takaful from the ⁣small-cap index ⁢to the medium-cap index, while MSCI has added the company’s shares to its‌ global benchmark index, ⁤dropping it from the small-cap index.

Analyst Insights: ‌Expectations and ⁣Concerns

According to⁢ Mary Salem, a financial analyst at Al-Sharq, the company’s shares have been performing well since⁣ 2022, with a 15% growth rate, followed by a 100% increase in 2023. ⁣The stock’s recent surge began in February​ this⁤ year, after the company announced ⁤a 353% ⁤net ​profit growth for 2023, creating ⁢a positive sentiment among investors.

However, Salem notes that ‌investors ‍are concerned ‌about the stock’s ‌high price-to-earnings (P/E) ratio of 51 times, which is higher than its peers​ in the local ⁣and regional markets. The stock has fallen nearly 7% in the⁢ past month alone, indicating a potential slowdown in its performance.