Earlier today I looked at a couple of mid cap ASX shares that could have bright futures ahead of them. On this occasion, I’m going to move higher up on the risk scale to small cap shares.
If your risk profile allows for it, here’s why these small cap ASX shares could be worth considering:
Booktopia Group Ltd (ASX: BKG)
Booktopia is the largest Australian-owned online book retailer based on market share. During the 12 months ended June 2020, the company was selling one item approximately every 4.7 seconds.
Positively, since then, its growth has gone up a level. This has been driven by a combination of the shift to online shopping and its investment in a new distribution centre.
In February, Booktopia reported a 40% increase in first half shipments to 4.2 million units. This underpinned a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million.
This went down well with analysts at Morgans. In response to its half year result, the broker retained its add rating and increased its price target to $3.53.
Whispir (ASX: WSP)
Whispir is a technology company that provides a communications workflow platform automating interactions between organisations and people.
The company notes that its products allow organisations to improve their communications through automated workflows to ensure stakeholders receive accurate, timely, useful and actionable insights. Furthermore, these are received in a manner that is sensitive to individual contexts and preferences.
Demand has been strong for its offering over the last couple of years and this has continued in FY 2021. In February, Whispir reported a 29.2% increase in its annualised recurring revenue to $47.4 million.
Positively, more of the same is expected in the second half. This should be supported by its recent $45.3 million capital raising, which was undertaken to support its growth plans.
Analysts at Ord Minnett are positive on the company’s future. They currently have a buy rating and $4.25 price target on its shares.
Where to invest $1,000 right now
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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 February 15th 2021
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Whispir Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Booktopia Group Limited. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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