One of the problems with Australia’s largest companies is that they are unable to generate the sort of growth that smaller companies can.

Telstra Corporation Ltd (ASX: TLS) is a $68 billion behemoth that is struggling to grow revenues at even low single-digit rates let alone at rates that could see revenues double anytime soon.

But many of those multi-billion dollar stocks on the ASX were at one stage small companies.

REA Group Limited (ASX: REA) – owner of Australia’s best known real estate portal – is now a $7.8 billion company – but was a micro company with a market cap of less than $40 million in 2000 after listing.

One of the most promising sectors on the ASX is those companies with market caps of between $200 and $800 million. Amongst these companies are those that already have an established history on the ASX, but are still not widely known by investors – or well-covered by broker analysts.

Here are 10 companies that I think could be billion dollar companies on the ASX (in no particular order).

Company Share price Market Cap ($m)
iSentia Group Ltd (ASX: ISD) $3.38 $677.0
Servcorp Limited (ASX: SRV) $6.97 $686.1
Speedcast International Ltd (ASX: SDA) $3.59 $436.4
Hansen Technologies Limited (ASX: HSN) $3.69 $659.9
Webjet Limited (ASX: WEB) $7.00 $679.7
Cedar Woods Properties Limited (ASX: CWP) $4.34 $342.8
Vita Group Limited (ASX: VTG) $4.10 $621.7
BWX Ltd (ASX: BWX) $4.73 $433.2
Virtus Health Ltd (ASX: VRT) $6.75 $539.6
Blue Sky Alternative Investments Ltd (ASX: BLA) $7.90 $531.1

Source: Google Finance

Some of those picks might be a bit controversial. A small Australian travel booking website, a property developer and a skin products retailer.

BWX Ltd operates in the body, hair, and skin care industry and has grown very quickly since listing on the ASX. If the company can continue generating strong growth, then there’s no reason why it couldn’t double in size or more.

Media monitoring and value-add company iSentia Group is expanding into Asia, has thousands of long-term clients already and I have no doubt it will be much bigger in the years ahead – one reason why I own shares in the company.

Speedcast continues to sign new customers to its satellite broadband services and enter important partnerships including a recent one with London-listed Inmarsat.

Foolish takeaway

The companies above might not all be cheap at today’s share prices, but could be worthy of further research – especially if they can generate strong growth in the years ahead.

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Motley Fool contributor Mike King owns shares of iSentia Group Ltd and Vita Group Ltd. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia owns shares of Hansen Technologies. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.