3 top mid cap shares I want in my portfolio

I think that the mid cap side of the Australian share market has a large number of high-quality shares which could be great investments over the long term.

Three that jump out as quality buy and hold options at present are listed below. Here’s why I think they are worth a closer look:

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is a fast-growing provider of software solutions for the wealth management, life insurance, and funds administration industries. Last month it posted a 27% increase in underlying net profit after tax to $27 million thanks to the growing popularity of its Sonata wealth management platform. During the 12 months Sonata revenue increased 32% to $122.5 million, meaning its now accounts for 55% of total revenue. Due to the quality of the product, I believe Sonata will continue to win a greater share of the market and propel Bravura Solutions’ growth for some time to come.

Collins Foods Ltd (ASX: CKF)

Collins Foods is a KFC franchisor with a total of 256 stores across Australia and Europe. Although its growth in Australia may be limited in the future due to the maturity of the market, I believe the underpenetrated European market will provide it with significant growth potential and could make it a great buy and hold option. Another bonus for patient investors is that Collins Foods pays a reasonably generous dividend which I feel could grow meaningfully along with earnings in the future.

Helloworld Travel Ltd (ASX: HLO)

Helloworld is an integrated travel company which was an impressive performer during earnings season. In FY 2018 the company posted a 3.5% increase in total transaction value to $6.1 billion and an impressive 48.1% increase in profit after tax to $32 million. The strong form is expected to continue in FY 2019 with management providing earnings growth guidance in the range of 16.5% and 23%. I believe this makes Helloworld’s shares great value at just 19x full year earnings.

Here are three more top mid cap growth shares which could be destined for a large cap future.

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Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of Bravura Solutions Ltd and Helloworld Limited. The Motley Fool Australia has recommended Collins Foods Limited. 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 Scott Phillips.

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