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These 3 small cap ASX stocks could be tomorrow’s megastars

If you want to supercharge your investment returns, investors need to bypass the usual blue-chip mega-market capital companies that make up a big percentage of the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) and take a closer look at smaller market cap companies.

It’s very difficult for companies like Telstra Corporation Ltd (ASX: TLS) or Wesfarmers Ltd (ASX: WES) to double their revenues and earnings in a short period of time, if at all, from where they are currently.

That’s not the case with small caps, which can double, triple or quadruple earnings or more, taking their share prices along with them.

Here are three small cap stocks that have the potential to become the billion-dollar stars of the ASX in the future…

Nearmap Ltd (ASX: NEA)

The photomapping company has a market cap of just $176 million today, but expansion into the US (and potentially other countries), as well as domestic organic growth could see this company grow earnings at a rapid rate. Nearmap recently reported its maiden profit, with revenues growing 62% over the previous year.

Unilife Corporation (ASX: UNS)

Unlife develops injectable drug systems and expects to release a number of new products this year. With revenues growing at an astonishing 436% to US$14.7 million in the 2014 financial year, it may not be long before this company is reporting healthy profits. With a market cap of just $286 million, Unilife could be one of the ASX’s blue chip stocks before long.

Energy Action Ltd (ASX: EAX)

Energy Action has a market cap of just $80 million today. The company runs the Australian Energy Exchange which allows clients to procure gas and electricity at the lowest possible prices. Energy Action is also an energy broker, securing best energy deals for government businesses and corporations. Energy Action disappointed shareholders with its most recent results, but that could just be a one off. With the share price down 25% since November 2013, this could be an opportunity.

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Motley Fool writer/analyst Mike King owns shares in Telstra Corporation and Nearmap. You can follow Mike on Twitter @TMFKinga