Here are 3 quality small-cap shares on my radar

National Veterinary Care Ltd (ASX:NVL) is one of three small-cap shares which I think could have very bright futures. Here's why…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I think Australia is home to a good number of high quality small-cap shares with bucket-loads of potential.

Three such shares which are on my radar at the moment are listed below. Here's why I think they could be worth a closer look:

Japara Healthcare Ltd (ASX: JHC)

Whilst the aged care sector is prone to regulatory changes, I believe the risk/reward on offer with an investment in Japara is compelling given Australia's ageing population. I'd pick Japara ahead of its rivals thanks to its strong management team and rapid expansion plans. By 2020 management has targeted an additional 1,100 new greenfield places, up 29% on its current places. Another bonus for investors is its generous dividend. At present its shares provide a trailing fully franked 5.5% dividend.

National Veterinary Care Ltd (ASX: NVL)

According to the RSPCA, pet ownership in Australia has grown to a massive 63% of Australian households. I believe this high level of pet ownership will result in strong demand for veterinary services moving forward, putting National Veterinary Care in a strong position to profit. Furthermore, as the veterinary market is highly fragmented, I think the company has the opportunity to follow in the footsteps of Greencross Limited (ASX: GXL) and grow significantly through acquisitions.

Think Childcare Ltd (ASX: TNK)

Much like National Veterinary Care, I believe Think Childcare has a long runway for growth through acquisitions. In fact, the company has a pipeline of newly developed, purpose built childcare centres around Australia waiting to be acquired progressively over the next five years from one of its incubators. I believe this and its trailing fully franked 4.2% dividend could make it a great buy and hold investment option today.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Greencross Limited. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »