Why Helloworld Travel could be one of the best growth shares on the ASX to buy today

I think the Helloworld Travel Ltd (ASX:HLO) share price could be one of the best growth shares to buy on the ASX right now…

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The Helloworld Travel Ltd (ASX: HLO) share price has been on form again on Wednesday.

In afternoon trade the integrated travel company's shares are up over 2.5% to $6.05. This means they have now risen approximately 21% year to date.

Why is the Helloworld Travel share price on the rise today?

This morning Helloworld Travel advised that it was holding a presentation to investors in Sydney.

Ahead of the event the company released an investor presentation that would be presented by the company's managing director and CEO, Andrew Burnes, and the rest of the executive management team.

It appears that this group of investors liked what they saw in the presentation and I can't say I'm surprised.

As well as taking investors through a comprehensive look at its business model, possibly in response to the recent short seller attack on Corporate Travel Management Ltd (ASX: CTD), management reminded those in attendance how well it has performed over the last couple of years.

This includes a significant reduction in its costs over the period and a sizeable jump in profits. In FY 2018 EBITDA grew 18.2% to $65.2 million and net profit after tax rose an impressive 48.1% to $32 million.

The good news is that management expects its strong form to continue in FY 2019 after its positive start to the year.

First quarter TTV was $1,700 million and revenues came in at $94 million. The latter was slightly ahead of management's expectations and 9.5% higher than the prior corresponding period.

All of Helloworld's segment have posted EBITDA growth so far this year, leading to quarterly EBITDA of $23 million. This is a 10.6% increase on the prior corresponding period.

As a result, management has reaffirmed its full year EBITDA guidance of between $76 million and $80 million, which represents year on year growth of approximately 16.5% and 22.7%.

Should you invest?

At 22x earnings I think that Helloworld's shares are trading at a very attractive level given its strong medium term growth potential. In light of this, I would put it up there with industry peer Webjet Limited (ASX: WEB) as one of the best growth shares to buy on the local market right now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia owns shares of Helloworld Limited. The Motley Fool Australia has recommended Webjet Ltd. 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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