If you're wanting to invest in the small side of the Australian share market, then the three small caps listed below could be worth a closer look.
They are growing quickly and could have very bright futures ahead of them. Here's why these small cap ASX shares could be worth adding to your watchlist:
Image source: Getty Images
Adore Beauty Group Limited (ASX: ABY)
The first small cap to watch is Adore Beauty. It is a leading online beauty retailer which has been growing strongly during FY 2021. So much so, it expects to report full year revenue growth of 43% to 47%. And while Adore Beauty's growth is likely to moderate in FY 2022 as its cycles strong sales growth during the pandemic, its longer term outlook remains very positive. This is due to its leadership position and the structural shift online for beauty sales.
Audinate Group Limited (ASX: AD8)
Another small cap ASX share to look at is Audinate. It is the leading digital audio-visual networking technologies provider behind the world class Dante audio over IP networking solution. Management notes that Dante is the evolution of AV systems, converging all previous connection types into one to deliver vastly superior performance. The solution is also making these systems easier to use, easier to expand, and less expensive to deploy. The number of Dante enabled products manufactured by its customers is now eight times greater than its nearest rival. This makes it the clear industry leader. Audinate has also just entered the video market, with its products being received very well.
Booktopia Group Ltd (ASX: BKG)
A final small cap ASX share to watch is Booktopia. This online book retailer has been growing at an explosive rate in FY 2021. For example, during the first half, Booktopia reported a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million. This strong form continued in the third quarter, with the company delivering a 53% increase in quarterly revenue. Management advised that this strong growth is being driven by the shift to online shopping and its new distribution centre. The latter is allowing the company to respond to the growing demand by shipping more books than ever.
