3 exciting small cap ASX shares to watch

Check out these highly rated small cap ASX shares…

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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.

Here's why these small cap ASX shares could be worth adding to your watchlist:

A man watches the share price movement closely.

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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 over the last few years. This has been driven by a significant lift in customer numbers thanks to the shift to online shopping. The good news for Adore Beauty and investors is that this shift is only really getting started in the beauty category. This gives the company a long runway for growth as the shift continues and more sales move online.

Alcidion Group Ltd (ASX: ALC)

Another small cap share to watch is Alcidion. It is a growing informatics solutions company which provides software which has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Demand has been strong for its offering, which is supporting strong sales growth. For example, earlier this week Alcidion revealed that year to date FY 2022 new sales had reached $42.9 million. This is up 93% on cumulative new sales at the same time last year.

Catapult Group International Ltd (ASX: CAT)

A final small cap to look at is Catapult. It is a global sports analytics company that provides elite sporting organisations and athletes with real time data and analytics to monitor and measure athletes. It has been a positive performer in FY 2022, with the company reporting a 13% increase in revenue to $37.5 million during the first half  This was driven by a sizeable 29% growth in subscription revenue, which reflects Catapult's strategic shift to a focus on high quality recurring revenue SaaS deals.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alcidion Group Ltd and Catapult Group International Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has positions in and has recommended Catapult Group International Ltd. The Motley Fool Australia has recommended Adore Beauty Group Limited and Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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