Motley Fool Australia

Fire up your portfolio with these 3 small cap superstars


Many blue chip shares such as Woolworths Limited (ASX: WOW) and Telstra Corporation Ltd (ASX: TLS) have been disappointments for their shareholders over the past 12 months, providing negative returns.

In contrast, some smaller, lesser followed companies have achieved sensational returns.

Here are three small-cap superstars that have provided their shareholders with huge returns in the past year.

Bapcor Ltd (ASX: BAP), previously known as Burson Group, is a leading distributor of automotive parts to both retail and wholesale trade customers.

Since listing in 2014 the share price is up around 200%, while in the past year alone the stock has surged close to 70%.

Driving the share price higher has been a mix of strong operating results and acquisitions.

On the results front, same-store sales grew around 5% in FY 2016, the gross margin expanded by 1.4% and the dividend was increased 26.4% to 11 cents per share (cps).

Meanwhile, a number of bolt-on acquisitions have also been undertaken including the recently announced NZ$322 million takeover offer for New Zealand based automotive distribution and wholesaling company.

Bapcor’s future remains bright.

Bellamy’s Australia Ltd (ASX: BAL), is the owner of the top-selling baby formula brand Bellamy’s Organic Australia.

The group’s share price has soared an astounding 780% since first trading on the ASX in August 2014; in the past year, the stock is up around 60%.

The market’s love affair with this company has been in part driven by impressive financial results.

In FY 2016, revenue soared 95% to $245 million, earnings leapt 342% to $54 million and the full year dividend was boosted 316% to 11.9 cps fully franked.

Driving enthusiasm for the stock has been the group’s exposure to growing Chinese consumption; Bellamy’s reported that China revenues climbed 331%.

This tailwind is likely to continue into future periods.

Hub24 Ltd (ASX: HUB) is a financial services technology company, providing investment and superannuation portfolio administration services.

Hub24’s share price has expanded by over 110% in the last year thanks to a big jump in operating metrics.

FY 2016 saw retail net inflows increase 102% to $1.6 billion, retail funds under advice grow 94% to $3.3 billion and platform revenue increase 91% to $15.4 million.

Importantly, having achieved scale, the group is now profitable on a monthly basis which bodes very well for the bottom line in FY 2017.

Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor Tim McArthur has no position in any stocks mentioned. The Motley Fool Australia owns shares of Bapcor and 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.

Related Articles…