Maximising gains with low capital remains the core aim of all investors. Here we give stocks priced under $1 from the ASX Small Caps List with a potential for high returns.
Vysarn Limited (ASX: VYS)
Vysarn Limited (ASX: VYS) recently announced the issuance of two 26D licenses by the Government of Western Australia (Department of Water and Environmental Regulation) to the Kariyarra Aboriginal Corporation RNTBC (KAC) for conducting a drilling and test pumping program on Indee and Kangan Stations in the Pilbara region of Western Australia. The company earlier reported about its wholly owned subsidiary Vysarn Asset Management (VAM) having entered into a Joint Resource Agreement (JRA) with the Kariyarra Aboriginal Corporation RNTBC (KAC).
As of 31 December 2023, the company maintained a robust cash position of $1.69 million, marking the first time the company was in a net cash position since September 2019
The company is considered among Small Cap ASX Stocks to Buy as it maintains a promising growth strategy through the vertical integration of its operations within the water service industry, systematically incorporating new verticals into its operations. Vysarn has already established strong operations in the consulting, design and engineering phases, the construction and extraction phases, as well as the control phase, boasting a solid position in developing infrastructure projects and managing water assets. While continuing to operate in these verticals, which have historically driven significant growth for Vysarn, the company is now exploring entry into the transfer phase, which involves pipeline construction, pump installation and various other key activities in the water service industry. This strategic move suggests further operational growth for Vysarn and enhances its market presence with fully vertically integrated operation
Vysarn presents a secure investment proposition, backed by a strong and consistently expanding presence in the resilient water services industry. The company has demonstrated consistent revenue growth, which has recently stabilized its earnings profile, providing increased predictability and confidence in its future earnings growth.
Macmahon Holdings Limited (ASX: MAH)
Macmahon Holdings Limited in its annual financial results for the fiscal year 2024, reported a revenue increase of 6.6%, reaching $2.0 billion, compared to $1.9 billion in FY23, surpassing the upper limit of the market guidance range of $1.9 billion.
The underlying EBITDA rose by 13.9% to $351.7 million, while the underlying EBIT(A) increased by 20% to $140.3 million, both figures representing record highs. The underlying EBIT(A) was at the upper threshold of the market guidance, which was set at $140 million. The growth in underlying earnings outpaced revenue growth, leading to enhanced margins, with an underlying EBITDA margin of 17.3% (up from 16.2% in FY23) and an underlying EBIT(A) margin of 6.9% (up from 6.1% in FY23). The margins for FY24 benefited from cost efficiencies as a greater number of projects achieved steady operational states with strong production outputs, alongside adjustments in contract provisions.
The company is one of the Best Small Caps ASX as it is consistently experiencing robust market demand and significant inflows of contracts, resulting in a substantial order book valued at $4.6 billion and a tender pipeline amounting to $21.4 billion. Furthermore, its client base is well-diversified across multiple sectors, with projects spanning over ten years, thereby establishing a solid foundation for future revenue generation and growth.
Delorean Corporation Limited (ASX: DEL)
Delorean Corporation Limited has a strong track record in delivering successful bioenergy projects, having completed three award-winning projects to date: Jandakot WA, Blue Lake Milling SA, and Ecogas NZ. It is currently constructing its fourth and largest project for Yarra Valley Water. With a proven history of successful project delivery and improved performance on a half-yearly basis, including better EBIT, NPAT, and EPS, coupled with sufficient cash reserves, the company is well-positioned to capitalize on market growth in the bioenergy sector.
Group in its recent financial update reported 45% revenue growth from FY23 and demonstrated its operational effectiveness with 148% growth in NPAT and EBITDA of $5.02 million, well above the forecasted EBITDA of $4.5 million to $5.1 million.
In Q1 FY2025, Delorean will focus on advancing the NSW1 project by securing planning approvals, finalizing commercial terms, and exploring finance options with Brickworks.
Among good Companies to Invest in ASX, Delorean anticipates sustainable earnings into FY25, bolstered by contracted EPC and third-party construction revenues, along with positive contributions from Large Scale Generation certificate contracts. The company also plans to advance its SA1 and VIC1 high-IRR BOO projects, which are expected to generate free cashflows from Q3 FY25 through organic waste fees, renewable gas, electricity sales, and environmental credits, with further revenue potential from biofertiliser and carbon dioxide byproducts. In FY24, Delorean progressed the NSW1 bioenergy project with Brickworks and secured $5 million in funding for the QLD1 project, both of which are anticipated to move toward construction in FY25 following planning approvals and financial investment decisions.
Delorean Corporation Limited is positioned strongly within the bioenergy sector, supported by its impressive track record and recent financial performance. The company's strong project pipeline, highlighted by the significant Yarra Valley Water project and a recent $30 million financing agreement with Tanarra Restructuring Partners, underscores its growth potential.
Source: Company’s Report
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