LEAP India shares rise after UBS forecasts 21% EBITDA CAGR through FY31

Shares of LEAP India, the newly listed logistics services provider, advanced as much as 4.65% to an intraday high of ₹147 after global investment firm UBS released a positive report on the company. On the BSE, LEAP India shares advanced as much as 4.73% to an intraday high of ₹146.95.

UBS in a note said that the company operates India’s largest pooled logistics-asset network, offering pallets, containers and material-handling equipment across the supply chain on a rental model.

UBS said that it sees LEAP India 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.

UBS added that it expects revenue to grow at compounded annual growth rate (CAGR) of 19% and EBITDA to grow at 21% over FY26-31, with growing mix of movement hire improving pallet yields and asset productivity.

UBS expects 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.

LEAP’s nationwide network and scale advantages position it to capture industry growth, while delivering improving returns and free cash flow, UBS added.

LEAP India made a stock market debut last month and the stock opened for trading at ₹165.80, marking a premium of 4.34% over the issue price of ₹159 per share.

Before the IPO, the company allotted 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, Morgan Stanley India Investment Fund, Amundi Funds New Silk Road, Citigroup Global Markets Mauritius, Goldman Sachs Investments (Mauritius), Societe Generale, Motilal Oswal Mutual Fund, JM Financial Mutual Fund, ITI Mutual Fund, Bank of India Mutual Fund, Axis Mutual Fund, Groww Mutual Fund, and Aditya Birla Sun Life Insurance.

LEAP India Limited operates in the supply chain management sector, providing asset pooling solutions. Its services include equipment pooling, returnable packaging, transportation, inventory management and repair & maintenance across industries like e-commerce, automotive, FMCG, and consumer durables.