4 exciting small cap ASX shares to watch

Universal Store Holdings Limited (ASX:UNI) and these four ASX small cap shares could be worth watching closely in 2021…
The post 4 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia. –

Two happy people use their hands as binoculars, indicating a positive ASX share price or on watch

If you’re a fan of small cap shares, then I would suggest you take a look at the ones listed below.

Here’s why these four ASX small cap shares could be ones to watch in 2021 and beyond:

Audinate Group Limited (ASX: AD8)

The first small cap share to look at is digital audio-visual networking technologies provider, Audinate. It is best known for its industry-leading Dante audio over IP networking solution. This solution is used widely across a number of industries and is currently dominating the competition. In fact, at the last count, the number of Dante enabled products manufactured by its customers was eight times greater than its nearest rival. This appears to have positioned it perfectly for growth once the pandemic passes.

Felix Group Holdings Limited (ASX: FLX)

Another small cap ASX share to watch is Felix. It is a cloud-based enterprise software-as-a-service marketplace platform provider for the commercial construction and related industries. Felix’s platform connects contractors and their third-party vendors, automating and streamlining a range of critical procurement-related business processes in the sector. During the first half of FY 2021, Felix delivered Enterprise SaaS Contracted annualised recurring revenue (ARR) growth of 48% to $1.8 million. This compares favourably to its global total addressable market, which is estimated to be worth $7.2 billion.

PlaySide Studios Limited (ASX: PLY)

A third small cap ASX share to look at is PlaySide Studios. It is one of the largest independent video game developers in Australia. The company has a growing portfolio of developed games. This includes games based on its own original intellectual property and games developed with Hollywood studios such as Disney. During the first half of FY 2021, PlaySide reported record first half sales revenue of $5 million. This was up 63% on the prior corresponding period. Positively, this is just a tiny fraction of its global market opportunity.

Universal Store Holdings Limited (ASX: UNI)

A final small cap to watch is Universal Store. It is a fashion retailer which aims to deliver a frequently changing and carefully curated selection of on-trend products to a target 16-35 year old fashion focused customer. It has been a particularly positive performer during the pandemic and reported impressive growth during the first half of FY 2021. For the six months ended 31 December, Universal Store delivered a 23.3% increase in sales to $118 million and a 63.6% increase in underlying net profit after tax to $21.1 million.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 4 exciting small cap ASX shares to watch appeared first on The Motley Fool Australia.

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