The S&P/ASX 300 Index (ASX: XKO) share section of the market can reveal very interesting opportunities. The businesses at the smaller end of the index are years into their expansion journey but may still have the potential for significant growth ahead.
It's important to remember that just because a stock has gone up doesn't mean it can't continue climbing higher with further operational success or profit gains.
The fund manager, L1 Capital, has picked out a couple of winners that could continue to perform in the longer term.
Let's get into those compelling ASX 300 shares.
Light & Wonder Inc. CDI (ASX: LNW)
This company describes itself as a leading cross-platform global games company. It provides casino-style games and machines for consumers.
L1 noted the Light & Wonder share price jumped 23% in February 2025 after the company delivered a number of positives. There was the "solid" FY24 fourth quarter result, and it also reaffirmed its FY25 guidance of $1.4 billion in operating profit (EBITDA).
Another positive was the company announcing an earnings-boosting acquisition of Grover Gaming.
The final positive that the fund manager referred to was a favourable court ruling in Australia. This court ruling denied a request by Aristocrat Leisure Ltd (ASX: ALL) for an interlocutory injunction regarding Light & Wonder's Dragon Train game. L1 said the ruling "in effect, allows Australian venues to keep the Dragon Train game on their floors".
Concluding the bullish opinion on the ASX 300 share, the fund manager said:
Light & Wonder continues to demonstrate strong earnings momentum across its land-based gaming, SciPlay and iGaming business segments which we believe sets the company up for double-digit EPS growth p.a. [per annum] over the medium term.
Imdex Ltd (ASX: IMD)
This ASX 300 share describes itself as a leading global mining-tech company that enables drilling contractors and resource companies to safely find, mine, and define orebodies with precision, confidence, and at speed.
The Imdex share price jumped 15% in February after reporting its FY25 first-half result, which beat market expectations and provided a confident medium-term outlook, according to L1.
L1 explained that the company "materially outperformed underlying exploration activity resulting in increasing market share and resilient margins, despite the declining revenue backdrop."
The fund manager said that, from a broader market activity standpoint, while exploration activity has been muted in recent history, it's seeing "some early signs of improvement going forward."
Commenting on the company's solid recent performance and the outlook, L1 said:
We believe this reflects its strong cost management, industry leading product offering and reliable revenue streams in a difficult market environment. Imdex provided positive FY26 commentary with its expectation for continued growth underpinned by further market share gains, margin expansion and digital penetration, which are all within the company's control.
