Three hot ASX small-cap shares for high-risk investors


  • Booktopia is a AU$347 million online book retailer which has been growing at a rapid pace.
  • Bigtincan is a AU$356 million provider of enterprise mobility software to businesses worldwide
  • During Q3 FY21, Damstra has delivered a high growth of 29.6% in revenue to AU$13.3 million.

Investing in small-cap shares is riskier than investing in blue-chips or even mid-cap companies. However, this relative high risk also comes with the potential of higher reward and is generally the ideal space for multi-bagger returns.

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Picking up the right companies in this space is no less than separating the wheat from the chaff. But no need to worry, we have compiled a list of three such stocks that investors can keep a track of in their quest to pick high-growth small-cap companies.

Read More: Three growth stocks investors are counting on

  1. Booktopia Group Limited (ASX:BKG)

Booktopia is a AU$347 million online book retailer, which has been growing at a rapid pace in the current financial year. During the first half of FY21, Booktopia registered a high growth of 51.1% in revenue to AU$112.6 million and an eye-opening rise of 502.3% in underlying EBITDA to AU$8 million. It then followed it up with another impressive spike of 53% in quarterly revenue during Q3 FY21.

This strong growth has been underpinned by the transitioning to online channels and its new distribution centre. The latter is benefitting the company in taking advantage of the increased demand by shipping books at a higher rate than ever.

On 18 May 2021, the BKG share price fell by 2.69% to AU$2.53.

Read More: Online Bookshop Booktopia (ASX:BKG) Gains More Than 20% At Its $43.1m IPO Debut

  1. Bigtincan holdings Limited (ASX:BTH)

Bigtincan is a AU$356 million provider of enterprise mobility software to businesses worldwide. The company’s popular software unlocks new and more effective ways for organisations to perform at higher levels and deliver better business performance by creating more positive and efficient buying experiences.

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The company empowers sales and service representatives of the businesses to maximise their use of sales collateral in a more productive engagement with existing customers and prospects. The demand for the company’s software has been picking up pace, materialising into strong annualised recurring revenues (ARR) growth.

On 18 May 2021, the BTH share price shot up by 3.61% to AU$0.86, reaching its highest level since 3 May.

Read More: Bigtincan’s Subsidiary BTC Mobility, LLC Completes Acquisition of VoiceVibes

  1. Damstra Holdings Limited (ASX:DTC)

Damstra Holdings is the smallest company on our list, having a market capitalisation of just AU$155 million. It is one of the leading integrated workplace management solutions provider. The company provides cloud-based workplace management platform for the businesses to track, manage, and protect their employees and assets. Damstra has been an outperformer over the last few years and has continued this strong performance in FY 2021.

During Q3 FY21, the company delivered a high growth of 29.6% in revenue to AU$13.3 million. The management also estimates that its total addressable market is expected to reach US$20 billion by 2022. This gives it a very bright future for growth potential. 

On 18 May 2021, the DTC share price fell 4.6% to AU$0.83, closing at 52-week low, making it a good bargain for high-risk appetite investors.

Read More: Damstra Holdings Limited Acquires Assets of SmartAsset Software





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