Consumer staples stock Ricegrowers Ltd (ASX: SGLLV) has been gaining some serious momentum over the last year.
Recent performance saw it added to the S&P/ASX 300 Index (ASX: XKO) during 2025.
The company offers rice and related products.
Business activities of the company are operated under Rice Pool, International Rice, Rice Food, Riviana, CopRice, and Corporate segments.
The principal activities of the company and its entities consist of the purchase and storage of paddy rice, the milling, processing, manufacturing, procurement, distribution, and marketing of rice and related products, animal feed and nutrition products, groceries, and others.
Recent performance
This consumer staples stock closed trading yesterday at $16.17 per share.
That's a 53% increase over the past year.
For context, the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) is up just 0.82% over that same period.
The consumer staples sector in general has been one of the poorest performing in the last year.
This growth from Ricegrowers isn't just exclusive to the last 12 months.
According to Bell Potter, since transitioning its listing to the ASX in 2019, Ricegrowers has achieved compound revenue growth of +11% p.a., compound EBITDA growth of +17% p.a. and compound EPS growth of +15% p.a.
Initiated coverage from Bell Potter
The team at Bell Potter has initiated coverage on this ASX consumer staples stock with a buy recommendation.
The broker says it expects FY27e to be a year of earnings consolidation given the materially reduced NSW rice crop (to a 7-year low).
Bell Potter also highlighted the 2030 targets from the company.
At the heart of the strategy SGLLV has a stated aspirational targets of reaching $3.0Bn in revenues, improving profitability margins and delivering consistent paddy prices >$500/t to create a more stable rice pool in the Riverina (@~500kt).
Central to the strategy is doubling the revenue base in ANZ, USA and the Middle East, continuing to develop the rice based snacking business and enhancing growth in the consumer and pet food portfolios.
Attractive valuation
The team at Bell Potter said the current valuation is relatively attractive compared to similar businesses.
The broker said parts of its rice business are comparable to dairy processors, its stockfeed operations are similar to other listed feed companies, and its cropping exposure is in line with agricultural peers.
Even though grain processors usually trade at lower valuations than dairy or FMCG companies, SGLLV's current valuation of about 8–9x future EBITDA looks cheap versus a more reasonable long-term blended valuation of around 10–11x.
Bell Potter currently has a price target of $18.75.
This indicates a potential upside of almost 16% from yesterday's closing price.
