Riyadh - Mubasher: Modern Mills for Food Products Company announced strong revenue growth in the second quarter (Q2) of 2026, reinforcing its growth outlook despite regulatory uncertainties, according to a report by Aljazira Capital.
The brokerage highlighted that the stock is trading at an estimated 2026 price-to-earnings (P/E) ratio of 11.4x, representing a significant discount to the Saudi food and beverage sector average P/E of 19.0x.
Aljazira Capital added that even under its most conservative scenario, the company's earnings are projected at SAR 2 per share, implying a P/E multiple of 14.3x, which the brokerage still considers attractive.
The report also cited the company’s expansion plans as a key growth driver, particularly the upcoming feed factory and the recently announced food ingredients factory, which are anticipated to support earnings growth and diversify the company's revenue streams over the medium term.
Based on its valuation and growth prospects, Aljazira Capital reiterated its "Overweight" recommendation on Modern Mills and maintained its target price at SAR 37.90 per share, implying a potential upside of 32.70% from current trading levels.
In Q2-26, the listed company’s net profit rose by 7.57% year-on-year (YoY) to SAR 53.43 million.
