In fact, investing in under-the-radar companies that others may be overlooking can sometimes give you an edge as an investor. By doing the leg work to gain an in-depth understanding of a company prior to others, you can potentially capitalize on the undiscovered potential.

With that in mind, let's take a closer look at these five ASX shares that you may not have come across before.

ASX shares building the world around us

If you asked someone on the street if they had ever heard of Maas Group Holdings Ltd (ASX: MGH), the answer would probably be, 'Who?'. Yet, Maas is a leading construction materials company boasting profits of $61.6 million on $517.1 million of revenue in FY22.

The company is growing top-line aggressively by making several debt-fuelled acquisitions. In 2022 alone, Maas made five acquisitions including quarries, plant hire, and maintenance services. Maas shares are down 45% over the last year and trade on a price-to-earnings (P/E) ratio of 13.2.

Similarly, Emeco Holdings Ltd (ASX: EHL) is another ASX share that most people couldn't tell from a bar of soap. But for such an unrecognisable name, the company sure has built up an enviable heavy machinery rental company.

In FY22, net profits after tax (NPAT) were ratcheted up by 22% to $69 million. The company achieved this result despite labour shortages, supply chain interruptions, and adverse weather events. Emeco shares are 7% in the hole over the past 12 months and are trading on a P/E ratio of 6.6.

Now, if anyone knows Capral Limited (ASX: CAA) by name, I would be impressed. At a market capitalisation of $130 million, it could easily slide by undetected by most investors. However, the aluminium product manufacturer pulled in $638.7 million of revenue in FY22 at a profit margin of nearly 8%.

While profits have since been retreating, the company still maintained a fully franked dividend — producing a dividend yield of 9.5%. Capral shares are 22% lower than where they were a year ago with the company trading on a P/E ratio of around 3.

Cars and healthcare

This next ASX share is the most profitable, in percentage margin terms, out of the bunch mentioned here. Eclipx Group Ltd (ASX: ECX) doesn't ring bells quite like Telstra Group Ltd (ASX: TLS), but the vehicle fleet leasing and management company does tout a better profit margin.

At the end of September 2022, Eclipx netted $103.3 million in profits for the previous 12 months, representing a 15.3% margin. The below industry average P/E of 5 times earnings possibly reflects the lack of top-line growth over the last five years or so.

Finally, what if I told you there is an ASX share doing over $10 billion in revenue annually and you still probably don't know it by name? Ever heard of a pharmaceutical retail giant by the name of EBOS Group Ltd (ASX: EBO)?

Maybe not… but I'd say there's a good chance you do know TerryWhite Chemmart, or Pharmacy Choice, or Good Price Pharmacy Warehouse… EBOS Group operates these businesses and many others across Australasia.

The company operates on paper-thin margins of around 2% but has successfully done so for 100 years. EBOS shares are up 7% over the last year and trade on a P/E of 32 times earnings.

The post 5 profitable ASX shares you probably have never heard of appeared first on The Motley Fool Australia.

ASX shares with exposure to aluminium include Alumina Limited (ASX: AWC) and Rio Tinto Limited (ASX: RIO), South32 Ltd (ASX: S32) and Capral Limited (ASX: CAA).

Let's take a look in more detail at the outlook for aluminium.

Improved aluminium outlook

Aluminium is a lightweight silver metal used in transportation, construction, power lines, electric vehicles and consumer goods.

Morgan Stanley has improved its aluminium price prediction for the long term, according to The Australian.

The broker has lifted its forecast for aluminium by 17% to US$2,525 per tonne. Analysts said:

Our new bottom-up modelling suggests 2030 copper and aluminium demand could be 24 per cent and 26 per cent higher than current levels.

On a 6-12 month view, we prefer aluminium, but on a medium-term view, we think the copper thesis looks more robust

The aluminium price climbed 1.6% to US$2308 per tonne overnight. Explaining this movement in a research note today, ANZ Australian economics head David Plank said "aluminium gained amid speculation of wide cuts to Chinese output". He added:

Some aluminium smelters in Yunnan may cut capacity by 20-30%, according to Shanghai Metals Market.

That follows orders from the local electricity authority to cut 10% of production since the weekend. This is added to supply issues in Europe, where soaring energy costs are
forcing smelter closures.

Rio Tinto is a major global aluminium producer. South32 is an aluminium producer with operations in South America, Australia and South Africa. Capral is a major Australian aluminium manufacturer and distributor. Alumina has a 40% stake in Alcoa World Alumina and Chemicals (AWAC).

Rio Tinto achieved gross product sales of US$7.796 billion from aluminium in FY22. The company achieved an average realised aluminium price of US$3,808 per tonne, 45% higher than the previous financial year.

Share price snapshot

The Alumina share price is down 23% year to date, while South32 shares have shed 3%. Rio Tinto shares have lost 8% year to date, while the Capral share price has fallen 18%.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has slid 6% year to date.

The post Morgan Stanley just boosted its outlook for aluminium. Here's which ASX shares have exposure appeared first on The Motley Fool Australia.

Let's take a closer look at the Aussie aluminium products manufacturer's news.  

Why is the Capral share price surging today?

In a pre-market update, Capral confirmed an approach from Allegro Funds Pty Ltd (Allegro) to acquire 100% of its shares. Allegro is proposing to pay $7.00 cash per share, which represents a significant premium to yesterday's closing price of $6.14.

According to today's release, the Allegro offer would be a 16.5% premium to the 1-day volume-weighted average price (VWAP) of $6.01 on 13 April 2021. It also represents a 17.6% premium to the adjusted 6-month VWAP of $5.95 on 13 April 2021.

That means shareholders will be keeping a close eye on the proposed takeover developments. The Capral share price has rocketed higher on the news, particularly given the board's comments today.

The board believes the proposal "has the potential to provide shareholders with a liquidity event and the opportunity to realise a meaningful premium to the recent market value of their shares".

It's worth noting that the proposal remains non-binding and subject to several conditions. These include satisfactory completion of due diligence by Allegro, Allegro securing appropriate debt finance and both parties entering a binding scheme implementation.

However, the Capral share price has surged higher today in anticipation. The board has concluded that it is in the best interests of shareholders for Allegro to proceed with due diligence. That means the board will be engaging further with Allegro to progress this proposal.

Foolish takeaway

The Capral share price has leapt more than 20% higher at the open following the potential takeover news. The $7.00 per share cash offer represents a significant premium to yesterday's closing price and would provide certainty to shareholders compared to a scrip consideration deal.

The post Why the Capral (ASX:CAA) share price is leaping 20% today appeared first on The Motley Fool Australia.

Here are 3 he tipped to readers:

Mineral Deposits Limited (ASX: MDL)

Mineral Deposits is a vertically integrated mining outfit that mines titanium dioxide (among other things) in Senegal and ships these to Norway for refining and sale to local customers. It's fallen on hard times recently, is loss-making, and carries a lot of debt. However, there are signs of improvement in both pricing and operating efficiency.

Capral Limited (ASX: CAA)

Capral is a tiny aluminium manufacturer that is thought by some in the market to be facing a long decline due to cheaper Chinese competition, and a possible slow-down in the building boom. However, Mr Mawhinney pointed out that the company trades at 5x earnings (the ASX average is ~16x) and has 1/3^rd of its market capitalisation in cash.

Here, There, and Everywhere (ASX: HTE)

Readers may be more familiar with Here + There's old name of APN Outdoor Group (ASX: APO). This company provides outdoor, radio, and digital advertising and shares have been hotly traded since the company launched on the ASX. Here + There has been gradually reshaping its operations and it's thought the company could have a strong future.

One takeaway for readers is that Allan Gray is quite contrarian and willing to be uncomfortable when they invest. As consistent out-performers since inception, its funds are happy to own shares with higher amounts of debt and taking a longer time-frame than other investors, especially at times when the market hates a given industry. This can make it tough on the shareholder who is not mentally prepared for what can occasionally be a hard slog in these types of investments.

The post 3 small caps this top fund manager thinks are a buy appeared first on The Motley Fool Australia.