I'm a big fan of growth shares, so I feel very lucky to have such a large number of quality options on the Australian share market to choose from.
Three of my favourites right now are listed below. Here's why I think they are amongst the best growth shares on the ASX:
A2 Milk Company Ltd (ASX: A2M)
I think this infant formula and dairy company is one of the best growth shares on the local market right now. It has been growing at an incredible rate over the last few years and continued this trend during the first half of FY 2019. During the half the company posted a 41% increase in revenue and a 55.1% jump in net profit after tax thanks largely to the increasing demand for its infant formula products in China. With the company now increasing its marketing in the country, I expect demand could continue to increase over the coming years, underpinning strong earnings growth for the foreseeable future.
Altium Limited (ASX: ALU)
Another growth share to consider is this electronic design software company. I think it is arguably one of the best buy and hold investment options on the local market thanks to its exposure to an Internet of Things market which is growing at an explosive rate. The growth of this market has led to demand for Altium's award-winning products and services increasing at a very strong rate. This recently led to the company posting half year revenue growth of 26% to US$78 million and profit after tax growth of 58% to $23.4 million. Looking ahead, management believes the company has a long runway for growth and recently provided an aspirational revenue target of US$500 million by 2025. This is a 150% increase on the company's revenue target for FY 2020.
Bravura Solutions Ltd (ASX: BVS)
Bravura is a provider of software products and services to clients operating in the wealth management and funds administration industries. I'm a big fan of the company and its increasingly popular Sonata wealth management product. Sonata has been the main driver of growth over the last few years and helped the company post a 24% increase in half year revenue to $127.4 million and a 28% lift in half year EBITDA to $23.8 million last month. I expect more of the same in the second half and beyond thanks to the quality of the platform and its sizeable market opportunity.
