MENU

5 market-beating small caps to power your returns

Credit: Gavin Mackintosh

Well it appears likely that the blue-chip section of the stock market is not going anywhere. However, there are still opportunities available for finding quality businesses with good growth prospects. Some businesses that have recently listed on the Australian Stock Exchange (ASX) have been successful in exceeding the returns of the S&P ASX 200 (Index: ^AXJO) (ASX: XJO).

I will explore five businesses that listed on the ASX not later than 2012 and have achieved solid stock price appreciation.

Company Industry P/E       ROE ASX Stock Price Appreciation Since Listing.
Bellamy’s Australia Ltd (ASX: BAL) Dairy 100.78 28.13% 594.33%
Capilano Honey Ltd (ASX: CZZ) Food 23.09 25.19% 893.87%
A2 MILK FPO NZ (ASX: A2M) Dairy N.A N.A 59.29%
Beacon Lighting Group Ltd (ASX: BLX) Retail 23.18 38.67% 68.98%
Baby Bunting Group Ltd (ASX: BBN) Retail N.A 8.91% 16.39%

Source: Google Finance

Bellamy’s Australia Ltd (ASX: BAL) – Baby food maker Bellamy’s share price has risen by a whopping 594.33%, since listing on the ASX in August, 2014. There is strong demand for its products particularly from Asia.

Capilano Honey Ltd (ASX: CZZ) – Since listing on the ASX in July 2012, Capilano’s investors have been rewarded with a meteoric 893.87% increase in the share price. The demand for Capilano’s products is likely to grow, which are sold in more than 30 countries.

A2 MILK FPO NZ (ASX: A2M) – New Zealand based dairy business A2 Milk’s share price has already lifted by 59.29% in few months, since listing on the ASX in April this year. The dairy products from A2 milk have unique health benefits.

Beacon Lighting Group Ltd (ASX: BLX) – Beacon lighting’s share price has lifted by 68.98% since its debut on the ASX in April last year. A well known and established retailer of lights and ceiling fans, it continues to record strong sales growth.

Baby Bunting Group Ltd (ASX: BBN) – A relative newcomer to the stock market, it only listed last month in October and has already witnessed a 16.39% rise in the share price. As a specialist retailer of baby products it is relying on growth in population for future growth.

Foolish takeaway

The above list includes a mix of new, pioneering, and already established businesses. The businesses like Beacon lighting, Capilano and Baby Bunting were successful before their ASX listing, thus making it easier to predict their future growth. However, Bellamy’s and A2milk are new and pioneering, and more risky. So a Foolish investor may want to assess their own risk profile before investing in any of the above companies.

Here Are 2 Top ASX Shares Warren Buffett Would Love…

Hot off the presses! The Motley Fool has just published a brand-new investment report and your copy is FREE. Click here to discover Warren Buffett's investing secrets and two top ASX shares Buffett could love! Your copy is free when you click here.

Motley Fool contributor Qaiser Malik has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia owns shares of Bellamy's Australia. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!