Top ASX growth shares to buy in March 2023

a small child and a pug dog sit in a go cart wearing old fashioned drivers headress and goggles as the drive along a country road with the boy holding his arm in the air and shouting as if celebrating their performance behind the wheel.a small child and a pug dog sit in a go cart wearing old fashioned drivers headress and goggles as the drive along a country road with the boy holding his arm in the air and shouting as if celebrating their performance behind the wheel.

With rising interest rates, ASX growth shares have taken somewhat of a back seat over the past year or so. Instead, many investors have been seeking out a potentially smoother ride among blue-chip, value, and dividend stocks.

But, as the great Warren Buffett once said, it can pay to ‘be greedy when others are fearful’.

While it can feel pretty scary investing your hard-earned cash into growth stocks during periods of economic uncertainty, these can be the best times to find the greatest investing opportunities. Particularly if you take the time to sniff out relatively young businesses with strong business models, competent management teams, and significant market opportunities.

So, if you’re happily focused on the investment destination, and don’t mind if the road gets a bit bumpy along the way, ASX growth stocks could be just the ticket.

Luckily for you, our Foolish writers have started the research engine for you and flagged the ASX growth shares they reckon are well worth taking for a spin in March. Here is what they came up with:

6 best ASX growth shares for March 2023 (smallest to largest)

Airtasker Ltd (ASX: ART), $103.40 million

Readytech Holdings Ltd (ASX: RDY), $358.97 million

Nanosonics Ltd (ASX: NAN), $1.37 billion

Webjet Limited (ASX: WEB), $2.68 billion

Treasury Wine Estates Ltd (ASX: TWE), $9.76 billion

Xero Limited (ASX: XRO), $11.95 billion

(Market capitalisations as at market close on 8 March 2023)

Why our Foolish writers love these ASX growth stocks

Airtasker Ltd

What it does: Airtasker runs an online market platform that connects people who need services or tasks performed with those willing to perform them for a fee. This could be anything from assembling furniture or putting up a playground to gardening, maintenance, and removalist services.

By Sebastian Bowen: Airtasker is one of the Aussie stock market’s newer companies, having only had its initial public offering (IPO) in 2021. But this ASX growth share has hit the ground running, and I have been impressed with Airtasker’s performance during its short public life.

Just last month, Airtasker reported its half-yearly earnings, which showed an impressive 57% rise in revenues and a 58% surge in gross profits. Clearly, Airtasker’s business model is proving popular.

Despite this, the Airtasker share price remains depressed and is sitting just above its current 52-week (and all-time) low. As such, I think it’s well worth a look this month.

Motley Fool contributor Sebastian Bowen does not own shares in Airtasker Ltd.

Readytech Holdings Ltd

What it does: Readytech describes itself as a next-generation, software-as-a-service (SaaS), cloud-based software provider to the education, workforce, government, and justice sectors. Its software includes people management systems, payroll, employment services, and community engagement solutions.

By James Mickleboro: I think Readytech could be a top option for ASX growth investors in the current environment. This is due to its strong growth outlook and its defensive earnings. With respect to the latter, almost 80% of the company’s first-half earnings before interest, tax, depreciation, and amortisation (EBITDA) came from its education and government segments.

Combined with its high-conviction pipeline valued at $27 million, Goldman Sachs believes this will lead to Readytech delivering a “+20% FY22-25E EBITDA [compound annual growth rate] CAGR“. It is no surprise, then, that the broker has a buy rating and a lofty $4.40 price target on Readytech shares.

This represents around 44% upside based on the current Readytech share price of $3.06.

Motley Fool contributor James Mickleboro does not own shares in Readytech Holdings Ltd.

Nanosonics Ltd

What it does: This company provides disinfection solutions for use with ultrasound probes in the healthcare industry. Nanosonics helps bring increased efficiency and safety to the process of infection prevention through the use of its Trophon devices.

A total of 31,120 units are installed globally across the United States, Canada, the United Kingdom, Europe, and Australia.

By Mitchell Lawler: A true ASX ‘growth’ share, in my opinion, is a company that has the capability and ingenuity to continually expand its addressable market through product innovation. Nanosonics is delivering in this regard by building upon the success of its Trophon devices. 

The Trophon system is targeted to a specific niche in disinfection, the ultrasound probe market. Now, Nanosonics is gearing up to disrupt another segment of healthcare equipment cleaning with ‘Coris’, an endoscope cleaning device. 

Notably, Nanosonics’ revenue is growing at an impressive rate. Total revenue for FY23 is forecast to be between 36% and 41%. Bringing new products to the market should help the company sustain this high rate of growth into the future. 

Motley Fool contributor Mitchell Lawler does not own shares in Nanosonics Ltd.

Webjet Limited

What it does: S&P/ASX 200 Index (ASX: XJO) listed Webjet provides online travel bookings in both the business-to-consumer and business-to-business segments.

By Bernd Struben: Webjet shares continue to gradually recover from the devastating 75% pandemic-fuelled drop that occurred in early 2020. The company has trimmed costs and is benefitting from a rapid return of domestic and international travel.

In November, Webjet reported its half-year underlying net profit after tax (NPAT) had returned to profit, albeit a slim one. Revenue was up 217% year on year. With global travel expected to continue rising, I believe Webjet is well-positioned to capitalise on that growth.

Indeed, analysts at Goldman Sachs forecast the company will increase earnings at a six-year CAGR of 15.3%. Goldman has a $7.20 price target on Webjet shares, around 2% above the current price.

The Webjet share price is up around 14% in 2023.

Motley Fool contributor Bernd Struben does not own shares in Webjet Limited.

Treasury Wine Estates Ltd

What it does: Treasury Wines is the name behind such wine brands as Penfolds, Wolf Blass, and 19 Crimes. It owns 11,300 hectares of vineyards and sells wine to more than 70 countries.

By Brooke Cooper: The Treasury Wine share price was hit hard by the COVID-19 pandemic and tariffs that China imposed on Aussie wine exports. Its share price is still almost 24% lower than it was in January 2020.

Of course, the company could benefit if Australia’s trade relations with China were to thaw. However, even if they don’t, Treasury Wines is still posting solid growth.

The company’s earnings jumped 17% last half, while its post-tax profit lifted 72.5% to $188 million.

And Morgans is tipping that to continue, with Treasury Wine forecast to post double-digit earnings growth from now until financial year 2025.

Motley Fool contributor Brooke Cooper does not own shares in Treasury Wine Estates Ltd.

Xero Limited

What it does: Xero provides cloud-based accounting software for accountants, bookkeepers, small business owners, and financial advisors. Users can access the software anywhere, at any time. It provides a number of automated and time-saving features.

By Tristan Harrison: The Xero share price has taken a steep dive since November 2021, down 45%. I think it’s now great value, especially considering the company continues to grow strongly.

Xero’s FY23 half-year operating revenue jumped by 30% to $658.5 million, while its total subscribers increased by 16% to 3.5 million. It also has a very high gross profit margin of 87%.

Strong gross profit growth enables the business to invest heavily for growth (marketing, as well as research and development). I think this investment is the best plan for long-term shareholder value creation.

Xero is expecting its profit margins to improve in the coming results, which I think will show how profitable the underlying operations actually are. With a retention rate of over 99%, I think it has a very promising future.

Motley Fool contributor Tristan Harrison does not own shares in Xero Limited.

The post Top ASX growth shares to buy in March 2023 appeared first on The Motley Fool Australia.

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More reading

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nanosonics, ReadyTech, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. The Motley Fool Australia has positions in and has recommended Nanosonics and Xero. The Motley Fool Australia has recommended ReadyTech and Treasury Wine Estates. 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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