The S&P/ASX 300 Index (ASX: XKO) share space can be a great place to find opportunities, particularly at a time when US tariffs are causing global stock market volatility. When share prices get lower, it can be a good time to consider investing.
The fund manager, L1 Capital, has outlined two businesses that could perform strongly as investments from here.
Let's get into which ASX 300 shares are viewed as compelling opportunities.
BlueScope Steel Ltd (ASX: BSL)
This company describes itself as a global leader in metal coating and painting products for the building and construction industries. It provides vital components for houses, buildings, structures, vehicles, and so on.
It has a presence in Australia, North America, New Zealand, the Pacific Islands, and throughout Asia. Some of its brands include Colorbond, Truecore, and Zincalume. It has major steel production facilities in Australia and the US.
L1 Capital noted that the company recently provided an annual operating profit (EBIT) improvement target of more than $1 billion, comprising cost reductions of more than $200 million, $500 million from growth investments and between $500 million to $1 billion from improved market conditions.
The fund manager suggested that these targets "give visibility to a materially higher earnings base in the future". Operating profit (EBIT) generation is currently around $600 million, with the potential to rise to more than $1.8 billion.
That profit growth comes at a time of supposedly "subdued investor sentiment" for BlueScope shares because the ASX 300 share is currently experiencing "challenging market conditions, particularly in Asia where excess Chinese steel production has led to elevated exports" of an annual run rate more than 100mt per year, according to L1. This is pressuring steel prices across the region.
L1 said that US steel spreads rose above US$500 per tonne, up significantly from around US$330 per tonne at the start of the year as buyers "looked to secure supply in the context of tariff uncertainty".
The fund manager explained its bullish view on the ASX 300 share:
We continue to believe the market significantly undervalues BlueScope's unique and strategic asset base and the longer-term resilience of the largely consolidated US steel sector.
Imdex Ltd (ASX: IMD)
L1 Capital also pointed out Imdex. This business provides an integrated range of drilling optimisation products, cloud-connected rock knowledge sensors, directional core drilling, and data and analytics to improve the process of identifying and extracting mineral resources.
Imdex's goal is to provide clients with increased accuracy, enhanced speed, and productivity gains from exploration to production.
L1 noted that the recent result released by the ASX 300 share was above market expectations and provided a "confident medium-term outlook".
The fund manager said the company materially outperformed underlying exploration activity, resulting in increased market share and resilient profit margins despite a declining revenue backdrop.
L1 believes this "reflects its strong cost management, industry leading product offering and reliable revenue streams in a difficult market environment".
The fund manager pointed out that Imdex provided positive FY26 commentary, with its expectations for continued growth underpinned by further market share gains, margin expansion, and digital penetration, which are all factors that the ASX 300 share can control.
L1 also said that looking at the broader market activity, "while exploration activity has been muted recently, we are seeing some early signs of improvement going forward".
It will be interesting to see how the company's growth initiatives play out.
