Top fund manager Ben Griffiths from Eley Griffiths Group has picked three ASX growth shares to buy.
Mr Griffiths founded Eley Griffiths Group in 2002 where he is the principal and portfolio manager. The investment team is focused on discovering the next small or microcap share to beat the market.
He wrote a piece that was published on Livewire discussing three growth stock ideas:
Helloworld Travel Ltd (ASX: HLO)
The retail, wholesale and travel service business might be a well-known name for readers who travel regularly. Mr Griffiths believes that the turnaround the company is going through is substantial.
A recent investor day forecast improving earnings before interest, tax, depreciation and amortisation (EBITDA) margins going from 20% in FY19, to 22.5% in FY19 and 25% in FY20 based on higher corporate & retail turnover and new corporate account wins.
Mr Griffiths also pointed to Helloword's investments in technology that should enhance profit margins on the sale and purchase of airline tickets. Offshoring has also supposedly generated pleasing results.
Bapcor Ltd (ASX: BAP)
Bapcor has seen its p/e ratio go from 21 in September to around 17 recently because of concerns surrounding the economy and missing the chance to buy Kmart Tyre & Auto.
The investment team at Eley Griffiths thinks these issues have been overdone considering only 20% of EBITDA is from Bapcor's retail segment.
The Australian store roll-out plan, wholesale acquisitions, growing private label sales and supply chain synergies make Bapcor one to consider for growth and value investors.
Brickworks Limited (ASX: BKW)
Brickworks is one Australia's largest construction businesses with its Australian brick businesses, namely Austral, and its building products subsidiaries. It also has a large focus on property investment and developments.
The large holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares means investors are paying almost nothing for the construction segment, according to Mr Griffiths.
Glen Gery, a recent acquisition, is the fourth largest brick producer in the US. Mr Griffiths called this move into North America an "interesting development".
Foolish takeaway
I completely agree with Mr Griffiths on Bapcor and Brickworks, both of them are quality ideas that deliver impressive results year after year.
Bapcor could be the best choice over three years, but Brickworks could be the better longer-term buy. It depends how well Bapcor's Asia expansion goes, compared to the Glen Gery acquisition for Brickworks.
