Insights

3 rapidly growing small cap ASX shares to watch

These small cap ASX shares could have bright futures…
The post 3 rapidly growing small cap ASX shares to watch appeared first on The Motley Fool Australia. –

The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Three that investors might want to get better acquainted with are listed below. Here’s why they are highly rated:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan is a leading provider of enterprise mobility software to businesses globally. Its popular software unlocks new and more effective ways for teams to perform at higher levels and deliver better business results by creating more positive and efficient buying experiences.

The company notes that its platform empowers sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively. Pleasingly, demand for its software has been growing quickly, which is underpinning strong annualised recurring revenues (ARR) growth. 

Booktopia Group Ltd (ASX: BKG)

Booktopia is an online book retailer which has been growing at a rapid rate. For example, during the first half, the company reported a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million.

Pleasingly, Booktopia then followed this up with a 53% increase in revenue during the third quarter. Management advised that this strong growth is being driven by the shift to online shopping and its new distribution centre. The latter is allowing the company to benefit fully from increased demand by shipping record volumes of books.

Universal Store Holdings Limited (ASX: UNI)

Universal Store is a fashion retailer delivering an ever-changing and carefully curated selection of on-trend products. The retailer has been on form this year, delivering a 23.3% increase in half year sales to $118 million and a 63.6% increase in underlying net profit after tax to $21.1 million.

Positively, this strong form continued in the third quarter. Universal Store recently reported a 39.6% increase in quarterly sales, putting it in a position to deliver a very strong full year result in August.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Top ASX shares to buy in June 2021

Don’t play the game you can’t win…

Top brokers name 3 ASX shares to buy next week

2 growing small cap ASX shares to watch closely

2 ASX shares this fund manager thinks could be cheap

The post 3 rapidly growing small cap ASX shares to watch appeared first on The Motley Fool Australia.

Important Notice
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!