LEAP India Limited

Industrials — Integrated Freight & Logistics · NSE

₹136.60+₹2.10 (+1.56%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of LEAP India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

LEAP India Limited provides supply chain asset pooling and management services, including pallet and asset rental, transportation, storage management, distribution, and warehousing solutions.

IndustryIntegrated Freight & Logistics

SectorIndustrials

Employees419

Annual revenue₹717 Cr

How does it make money?

Turns over ₹717 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹53 left at the operating level before interest, tax and depreciation. Each of its 419 employees supports ₹1.71 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin53.2%

Net margin8.7%

Revenue / employee₹1.71 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 9.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE9.0%

ROE6.2%

Peer median ROE15.2%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 21.4% and earnings to grow about 44.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.4%

Est. earnings growth+44.3%

Analysts4

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +189% while net margin moved +140% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+189%

Margin effect+140%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 88.1x is demanding — it needs sustained high growth to justify
✗ P/B of 8.11x is a steep premium to book

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

51/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

88.1x

Sector Median

88.8x

median of 3 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

88.8x median of 3 peers · -1%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

88.1x

P/B

8.11x

EV/EBITDA

18.8x

PEG

0.97

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 50.8% to 53.2% over 3 years.
Return on equity is rising
ROE has improved from 1.6% to 6.2%.
Return on capital is rising
ROCE has improved from 5.1% to 9.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 182% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 182% over 3 years, from ₹408 Cr to ₹1,151 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 50.8% to 53.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 32% a year✓ 42.4% CAGR
Latest reported year was 19.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 51%✓ 53.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹122 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹6,018 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

88.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

8.11x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.55

Profitable

Profitable on a per-share basis

ROE

6.2%

Weak

Weak capital efficiency

ROCE

9.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.14x

Moderate

Moderate leverage

Revenue Growth (YoY)

19.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

62.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹122 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹136.6

P/E (Forward)

43.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

23.4%

Good

Healthy core-business profitability

Net Margin

8.9%

Average

Average bottom-line conversion

Current Ratio

1.15

Adequate

Adequate, but no real cushion

52W Range Position

18%

Mid-range

Technical Snapshot

RSI (14)

45.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹248 Cr	₹360 Cr	₹458 Cr	₹717 Cr	+42.4%
EBITDA	₹126 Cr	₹208 Cr	₹261 Cr	₹381 Cr	+44.6%
EBITDA Margin	50.8%	57.7%	57.0%	53.2%	—
PAT (Net Profit)	₹9 Cr	₹37 Cr	₹38 Cr	₹62 Cr	+90.5%
EPS	₹0.24	₹0.98	₹0.99	—	—
ROE	1.6%	5.2%	4.1%	6.2%	—
ROCE	5.1%	8.2%	7.0%	9.0%	—
Total Debt	₹408 Cr	₹572 Cr	₹920 Cr	₹1,151 Cr	+41.4%
Free Cash Flow	₹42 Cr	-₹177 Cr	-₹38 Cr	-₹122 Cr	—

🟢 Revenue has grown at 42.4% a year over 3 years.

🟢 EBITDA has grown at 44.6% a year over 3 years.

🟢 EBITDA Margin has risen from 50.8% to 53.2% over 3 years (+2.4 pts).

🟢 PAT (Net Profit) has grown at 90.5% a year over 3 years.

🟢 ROE has risen from 1.6% to 6.2% over 3 years (+4.6 pts).

🟢 ROCE has risen from 5.1% to 9.0% over 3 years (+3.9 pts).

🔴 Total Debt has grown at 41.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹42 Cr to -₹122 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,401 Cr

Total Liabilities

₹1,395 Cr

Total Debt

₹1,151 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹268 Cr

Capex

-₹390 Cr

Shareholding (proxy)

Institutional Holding

11.0%

Insider Holding

60.8%

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹178.75

+30.9% vs CMP

Target Range

₹175 – ₹190

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 negative5 general

LEAP INDIA LIMITED Share Price

Upstox, 17 Oct

LEAP India (LEAPIND) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Leap India promoter Sunu Mathew revises pledge disclosure for debenture security

scanx.trade, 16 OctOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

LEAP India shares get their first 'buy' recommendation from UBS; Here's how high the stock can go - CNBC TV18

LinkedIn, 21 Sept

Leap India Ltd | Stock Share Price Live

MarketSmith India, 22 Aug

LEAP India Share Price: UBS Buy Call, 25% Upside Target

Univest, 21 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🔴Financial HealthStretched7/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate8.3/15

🔴ValuationDemanding3.2/15

🔴RiskHigh3.1/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 32% a year42.4% CAGR
✓EBITDA margin holds above 51%53.2%
✗Debt / EBITDA falls below 3x3.0x
✗Free cash flow remains positive-₹122 Cr
✗Interest cover stays above 3x1.9x