Though investing in microcap stocks is considered to be risky because these companies are relatively new with limited operating histories, carefully selected ones sometimes turn out to be incredibly rewarding. Many such companies offer opportunities for outsized potential for gains in the long run.
Best ASX microcap stocks
OTTO Energy Limited (ASX: OEL)
Caprice Resources Limited (ASX: CRS)
Cosmos Exploration Limited (ASX: C1X)
Saferoads Holdings Limited (ASX: SRH)
Veris Limited (ASX: VRS)
OTTO Energy Limited (ASX: OEL)
demonstrated stable production during the FY25. The total WI Revenue reported at USD 4.20MM, slightly lower than the previous year due to weaker average commodity pricing and lower demand for Gas. The production of Oil remained stable, but the price fell from 1418 Boe/d to 1320 Boe/d. The company distributed USD 25 million to shareholders and remained with an operating cash position of USD 14 million. OEL has a P/B ratio of 0.34, suggesting that the stock is trading below its book value despite having solid fundamentals. The company seems to fit for long-term investment.
Caprice Resources Limited (ASX: CRS)
is progressing operationally, as it has started the Phase 4 drill program covering 20,000 metres at Island Gold. The company will begin with a drilling campaign at Vadrians, which has previously reported the availability of high-grade resources. This will increase the company’s MRE at the IGP. CRS has recorded consistent revenue of around $0.01 million as of December 2024, in line with revenue in June 2024. The company has a gross profit margin of 100 per cent, which shows that it has zero direct costs. The operations commenced at phase 4 are fully funded. CRS is well funded $ with 7.8 million in cash reserves. The prices of gold are increasing, which provides a favourable outlook for the company.
Cosmos Exploration Limited (ASX: C1X)
has achieved a significant milestone by agreeing with Vulcan Energy Resources Limited. This deal gives EAU Lithium (the company’s entity) access to an A DLE pilot plant, which will allow the company to move forward with pilot testing of Bolivian brines. The company is positioning itself as a strong player in Bolivia’s Lithium industry. Moreover, this will be executed by partnering with YLB and the government. C1X has the option to acquire full ownership of EAU Lithium, which enables the company to take advantage of. The company has a cash balance of $0.678 million as of June quarter end 2025. C1X has shown progress in its operations.
Saferoads Holdings Limited (ASX: SRH)
successfully executed the sale of Road Safety Rentals, with the profit being distributed to shareholders in the form of 10-cent fully franked dividend. The group has cleared all its debt, and voluntarily has retained $75000 as a corporate credit facility. During the year, the group has received two large orders worth $0.2 million from the Local government, showcasing that demand for Rapid stop Pedestrian protection barriers is increasing. SRH has recorded revenue from business activities of $5.79 million in December 2024, slightly lower than $5.93 million in June 2024. Alongside, gross profit margin rose from 40.69 per cent to 42.79 per cent during the same period. Operating profit turned positive in December 2024 to $0.04 million. The group continues with upward momentum.
recorded revenue of $97.2 million in FY2025, up from $92.6 million in FY24. Profit before tax reported at $2.0 million, recovering from a loss of $4.4 million in FY24. Alongside this, Gross profit margin improved to 36.5 per cent, driven by an uplift in the value of new projects added this year. The company has recently acquired Spatial Vision to grow its digital advisory capabilities and expand its reach in the government sector. The company has distributed 0.2 cents per share fully franked in FY25, reflecting a 55 per cent dividend payout ratio. Moreover, it has reported a strong order book of more than $65 million, making a grand entry in the next year.
(Source: Company Announcements)
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