Three small caps that reflect different aspects of Asia's growth and transformation

In recent years, South and Southeast Asia have attracted investors as a trove of new ideas and high-growth companies, with economies across the region undergoing rapid expansion and transformation. While investor attention often remains focused on large corporations, smaller firms in Asia are also delivering impressive growth and innovation, frequently achieving success within their respective niches. The MSCI Asia Apex Small Cap 200 index, which tracks the performance of the 200 largest and most liquid small caps in the broader MSCI AC Asia ex Japan Small Cap index, has soared 79.8% over the past three years and is up nearly 14.0% year to date. By comparison, the MSCI AC Asia Pacific index has risen 11.8% and 13.6% over the same periods, respectively.

Analyst Aldiyar Anuarbekov has identified three small-cap stocks from different parts of Asia – India, the Philippines, and Vietnam. These cases, drawn from various industries, illustrate how the economic potential of each region is taking shape. Small-cap firms in these markets often serve as a reflection of broader economic trends: MapmyIndia captures the digital rise of India; D&L Industries represents the industrial evolution of the Philippines; and SCSC mirrors the logistics boom in export-oriented Vietnam. These companies not only offer potentially high returns for investors but also insight into the fundamental changes ongoing in the region.

The company, better known as MapmyIndia, is a shining example of a small-cap tech firm thriving amid India’s digital transformation. A local equivalent to Google Maps, MapmyIndia provides digital mapping and geospatial software for businesses, motorists, and government projects.

Its mapping technology is sold both B2B and B2G. The maps come preinstalled in millions of vehicles (including models from India’s largest automakers) and are used in logistics operations, drones for urban planning, and public-sector infrastructure monitoring. Unlike Google, whose business model relies heavily on advertising, MapmyIndia generates the bulk of its revenue from licensing and services – an approach that has helped ensure steady growth and robust margins.

In fiscal 2024, ended March 31, 2025, MapmyIndia’s revenue rose 22% to INR463.3 crore (INR1 crore equals INR10 million; approximately $53.5 million at current exchange rates). EBITDA increased 15% to INR179.9 crore ($20.8 million), while net profit climbed 10% to INR147.6 crore ($17.0 million). The EBITDA margin came in high at around 39%.

The fourth-quarter performance was even stronger. The top line grew 34% year over year, EBITDA 47%, and net profit 28%, with the EBITDA margin reaching 40%. The open order book expanded 10%, supporting a favorable revenue outlook for the coming years. Management at parent company C.E. Info Systems forecasts annual revenue of over INR1,000 crore (roughly $116 million) by fiscal 2028.

Since the start of 2025, shares of C.E. Info Systems have risen approximately 9.5%, outperforming India's benchmark BSE Sensex index, which has gained 6.5% over the same period. The stock’s high valuation – it trades at a P/E of 65 – suggests that investors have already priced in some of the company’s anticipated growth. Even so, MapmyIndia’s unique positioning, as a provider of solutions for both government digital initiatives and expanding private-sector demand, puts it in a strong position to meet elevated expectations.

D&L Industries illustrates how a small-cap company can capture multiple facets of a growing economy. Founded in 1963 as a family-run business, D&L has evolved into a diversified manufacturer of specialty ingredients and raw materials serving a broad range of industries, from food production to plastics and organic chemicals. Operating a B2B2C model, the company develops and supplies customized components to major consumer goods manufacturers. This positioning makes D&L a bellwether for industrial development in the Philippines. Its business expansion reflects growth in domestic production of food, cosmetics, household chemicals, and other everyday products. In 2014, D&L acquired Chemrez Technologies, a manufacturer of green chemicals and coatings. The acquisition marked a turning point, fueling expansion into industrial and construction materials, which now contribute roughly 30% of the group’s revenue.

In recent years, D&L has continued to strengthen its focus on specialty ingredients and sustainable chemistry, delivering steady financials growth, though not the explosive kind delivered by tech firms. In 2024, group revenue rose 21% to PHP40.7 billion (approximately $820 million), driven by higher sales volumes. In the first quarter of 2025, as its upgraded Batangas facility reached full operational capacity, net income increased 10% year over year and 28% quarter over quarter. Exports stood out, climbing 69% year over year and accounting for 34% of total revenue for the first time.

Since the beginning of the year, D&L shares are down roughly 11.5%. As of early July, the stock was trading near its lows dating back to April 2020, when the pandemic-related panic gripped financial markets. From a technical standpoint, the current price may present a compelling entry point, with upside of 20-22% from current levels.

Saigon Cargo Service Corporation is a prime example of a small-cap company whose strategic importance to the national economy far outweighs its modest market capitalization. Founded in 2008 to build and operate a modern air cargo terminal at Ho Chi Minh City's Tan Son Nhat International Airport, Vietnam’s largest airport, SCSC brought the facility online by 2010. Today, it is one of just two air cargo terminal operators at the airport, effectively operating within a duopoly and controlling a significant share of Vietnam’s air freight traffic.

This strategic foothold has turned SCSC into a highly profitable logistics player. Equipped with modern warehouses and transshipment infrastructure, the company serves both international cargo airlines and local carriers. At the same time, it benefits from the broader expansion of trade and, in particular, the surge in e-commerce.

Amid Vietnam’s export-driven economic model, this niche has proven especially lucrative. The country has emerged as a global manufacturing hub, with foreign trade volumes reaching historic highs. Between 2018 and 2023, Vietnam’s exports jumped from $266 billion to $424 billion, bolstered by surging foreign investment and the rise of the “China Plus One” strategy, where multinational firms relocate part of their production to other countries in Asia while maintaining a footprint in China. Factories for global giants such as Samsung, Intel, and Apple continue to proliferate across Vietnam, driving demand for reliable logistics infrastructure. SCSC found itself in the right place at the right time, particularly as China contended with tariffs.

SCSC was also the first company in Vietnam to receive the prestigious IATA CEIV Pharma certification for pharmaceutical cargo handling, enhancing its appeal to global clients. In 2024, Qatar Airways began working with SCSC, contributing to a further rise in cargo volumes.

Financially, SCSC stands out even among infrastructure peers for its high profitability and shareholder returns. In the first quarter of 2025, revenue rose 15% year over year to VND266.3 billion (approximately $10.4 million), while net profit climbed 12% to VND169.9 billion ($6.6 million). The company posted a net margin of roughly 64%, meaning nearly two thirds of its revenue converted into earnings, underscoring its pricing power and operational efficiency.

As of early July, SCSC shares are down approximately 17% from the beginning of the year, trading near VND67,000 apiece. To return to its 200-day moving average of VND73,000 per share, the stock would need to gain an additional 9%. After hitting a low of VND52,400 per share in April, SCSC has already rebounded and offers upside of nearly 40% versus current levels to revisit previous highs around VND93,000 per share.

SCSC shares its profits generously with investors. For full-year 2024, the company paid a dividend of VND6,000 ($0.20) per share, for a yield of nearly 9.6%. Such a near double-digit dividend yield is uncommon for small caps; it underscores the maturity and stability of SCSC's business.

The AI translation of this story was reviewed by a human editor.