Because I'm a fan of small cap shares, I feel quite lucky to have a large number to choose from on the Australian share market.
Two small cap ASX shares that could have bright futures are listed below. Here's what you need to know about them:
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Booktopia Group Ltd (ASX: BKG)
The first small cap to watch is Booktopia. It is an online book retailer which has impressed since its IPO late last year. Booktopia was supposed to struggle when Amazon launched in Australia, but that simply hasn't been the case.
For example, during the first half of FY 2021, the company shipped a total of 4.2 million units for the six months. This was up 40% on the prior corresponding period and led to Booktopia reporting a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million.
Analysts at Morgans appear confident there will be more of the same in the future. Morgans is tipping further market share gains and scale benefits. In light of this, it has an add rating and $3.53 price target on its shares.
Doctor Care Anywhere Ltd (ASX: DOC)
Another small cap to watch is Doctor Care Anywhere. It is a growing UK-based telehealth company that is aiming to deliver high-quality, effective, and efficient care to its patients.
Due partly to the pandemic accelerating the adoption of telehealth services, Doctor Care Anywhere is another company growing quickly.
For example, last month Doctor Care Anywhere released its first quarter update and revealed a 16.5% increase in unaudited underlying revenue to 4.4 million pounds (A$6.87 million). The company also reported a 14.7% increase in sign-ups to the platform to 500,000 and a 21.9% increase in consultations delivered to 90,500.
Bell Potter is positive on its prospects. The broker currently has a buy rating and $1.95 price target on the company's shares.
