LEAP India shares gained up to 5% on Monday after global investment firm UBS released a positive report on the company, setting a target price of ₹175 per share, implying an upside potential of nearly 25% from Friday's closing level. The shares hit an intraday high of ₹147.50 per share on the NSE, rising 5% before some profit booking emerged at higher levels. As per Moneycontrol, the stock was trading at ₹145.31 per share, up 3.45%, at around 12:45 p.m. This marks a significant recovery from the stock's recent performance, which had declined 13% in the past month despite positive analyst coverage. The stock had previously closed 3.4% higher at ₹140.9 per share but remained 11.4% below its issue price of ₹159 and 15% below its listing price of ₹165.9.
UBS projects LEAP India's revenue to grow at a Compounded Annual Growth Rate (CAGR) of 19% over financial year 2026-2031, while EBITDA is expected to grow at 21% CAGR over the same period. As reported by Moneycontrol, the brokerage expects the company's EBITDA margins to increase from 49.5% to 53.8% and return on capital employed (ROCE) to rise from 8.4% to 14.7% over FY26-31. The growth strategy focuses on movement hire improving pallet yields and asset productivity. According to UBS, the growth mix will be driven by movement hire improving pallet yields and asset productivity, positioning the company to capture industry growth while delivering improving returns and free cash flow. As per Moneycontrol, the brokerage sees LEAP as a play on the modernisation of Indian logistics, supported by low palletisation and pooling penetration, increasing warehouse formalisation and rising demand for supply-chain efficiency.
According to Moneycontrol, LEAP India operates India's largest pooled logistics-asset network, offering pallets, containers and material-handling equipment across the supply chain on a rental model. The company's nationwide network and scale advantages position it to capture industry growth while delivering improving returns and free cash flow. LEAP India Limited operates in the supply chain management sector, providing asset pooling solutions including equipment pooling, returnable packaging, transportation, inventory management and repair & maintenance across industries like e-commerce, automotive, FMCG, and consumer durables. As per Moneycontrol, the brokerage views LEAP as a play on the modernisation of Indian logistics, supported by low palletisation and pooling penetration, increasing warehouse formalisation and rising demand for supply-chain efficiency.
The IPO comprised a fresh issue of equity shares worth ₹480 crore and an offer for sale (OFS) of ₹2,000 crore, taking the total issue size to ₹2,480 crore. Under the OFS component, the KKR-backed Vertical Holdings II sold its equity worth nearly ₹1,999 crore, while the promoter group KIA EBT Scheme 3 offloaded the remaining stake. According to Moneycontrol, the company's founder and MD Sunu Mathew expects profit after tax (PAT) growth to remain above 50%, supported by lower interest costs as the firm uses IPO proceeds to repay its debt. The stock listed on stock exchanges last month at a premium of over 4%, with the company allotting 4.68 crore shares valued ₹743.62 crore to 32 anchor investors including Smallcap World Fund, Norway's Government Pension Fund Global, Monetary Authority of Singapore, and Morgan Stanley India Investment Fund.
The stock has declined 13% in the past month, despite the positive analyst coverage and recent market response. As reported by Moneycontrol, LEAP India shares listed on stock exchanges last month at a premium of over 4%, but the current trading levels reflect some post-listing pressure. The company's performance will be closely watched as it navigates the competitive logistics market while implementing its growth strategy and debt reduction plans, with the latest market response showing renewed investor interest following UBS's positive report and target price setting.
