LEAP India shares rise up to 5% as UBS initiates coverage with ‘Buy’ rating, sees up to 25% upside

New business data points to the fact that Logistics firm LEAP India shares advanced up to 5 percent on Monday after UBS initiated coverage on the stock with a 'Buy' rating, terming it a play on the modernisation of India's supply chain.

The shares of the firm hit an intraday high of Rs 147.50 per share on the NSE, rising 5 percent. Later, some earnings booking emerged at elevated marks and the stock was trading at Rs 145.31 per share, up 3.45 percent, at around 12:45 p.m.

UBS has set a target price of Rs 175 per share, implying an upside potential of nearly 25 percent from Friday's closing level.

LEAP operates India's largest pooled logistics-asset network, offering pallets, containers and material-handling equipment across the supply chain on a rental model.

UBS stated it 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.

The brokerage anticipates topline to grow at a 19 percent CAGR and EBITDA at a 21 percent CAGR over FY26-31E, with a growing mix of movement hire improving pallet yields and asset productivity.

As a result, UBS anticipates EBITDA margins to gain from 49.5 percent to 53.8 percent and return on capital employed (ROCE) to climb from 8.4 percent to 14.7 percent over FY26-31.

"LEAP's nationwide network and scale advantages position it to capture industry expansion, while delivering improving returns and free cash flow," the brokerage stated.