3 growing small cap ASX shares going places

Here are three small caps to watch carefully…

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Investing in the small side of the share market carries more risk than other areas.

However, if your risk tolerance allows for it, having a bit of exposure to this side of the market could be a good thing for a balanced portfolio given the potential returns on offer.

With that in mind, here are three small cap ASX shares that could be worth watching closely:

Alcidion Group Ltd (ASX: ALC)

The first small cap share to watch is Alcidion. It is a growing healthcare informatics solutions company. Alcidion provides software which has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. It appears well-placed for growth in the future thanks to increasing demand and the ongoing shift to a paperless environment in the healthcare sector.

Bigtincan Holdings Ltd (ASX: BTH)

Another small cap ASX share to watch is this leading provider of enterprise mobility software to businesses globally. Bigtincan’s software allows teams to perform at higher levels and deliver better business results by maximising their use of sales collateral to engage with customers and prospects more effectively. Demand for its software continues to grow and has been underpinning strong annualised recurring revenue (ARR) growth in recent years.

Silk Laser Australia Limited (ASX: SLA)

A final small cap to watch is Silk Laser. It is one of Australia’s largest specialist clinic networks, offering a range of nonsurgical aesthetic products and services. Silk’s five core offerings comprise laser hair removal, cosmetic injectables, skin treatments, body contouring and skincare products. Thanks to a combination of growing demand and store expansion opportunities, Silk has been tipped to continue its solid growth long into the future. It released its half year results this morning and revealed a 70% increase in network sales and a 20% lift in EBITDA.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Alcidion Group Ltd and BIGTINCAN FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended SILK Laser Australia Limited. The Motley Fool Australia has recommended Alcidion Group Ltd, BIGTINCAN FPO, and SILK Laser Australia Limited. 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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