Key Events This Week
Feb 9: Stock surges 6.63% on strong volume
Feb 10: Marginal gain of 0.28% amid steady market
Feb 11: Price dips 1.97% despite Sensex gains
Feb 12: Rating upgraded to Hold; valuation turns very attractive
Feb 13: Stock rebounds 2.03% despite Sensex decline
Strong Start on 9 February: 6.63% Surge on Heavy Volume
The week began on a positive note with Leading Leasing Finance & Investment Company Ltd closing at ₹3.54 on 9 February, a sharp gain of 6.63% from the previous close of ₹3.32. This rally was supported by a substantial volume of 1,208,815 shares, signalling strong investor interest. The broader Sensex also advanced 1.04% that day, closing at 37,113.23, but the stock’s outperformance was notable, reflecting renewed optimism possibly linked to early indications of valuation improvements.
Modest Gains on 10 February Amid Market Stability
On 10 February, the stock edged up slightly by 0.28% to ₹3.55, with volume tapering to 560,154 shares. The Sensex continued its upward trajectory, gaining 0.25% to 37,207.34. The stock’s relative stability amid a steady market suggested consolidation after the prior day’s sharp rise, as investors digested emerging fundamental developments.
Profit Taking on 11 February: Price Declines 1.97%
Despite the Sensex advancing 0.13% to 37,256.72, Leading Leasing Finance’s share price retreated 1.97% to ₹3.48 on 11 February, with volume rising to 1,360,019 shares. This dip reflected some profit booking and cautious sentiment ahead of the company’s rating update. The divergence from the broader market highlighted investor uncertainty amid ongoing sector challenges.
12 February: Upgrade to Hold and Valuation Turns Very Attractive
The pivotal event of the week occurred on 12 February when MarketsMOJO upgraded Leading Leasing Finance & Investment Company Ltd from Sell to Hold, citing significant improvements in valuation and financial strength. The stock closed at ₹3.44, down 1.15% on the day, on volume of 551,104 shares, while the Sensex declined 0.56% to 37,049.40.
This upgrade was underpinned by a shift in the company’s valuation grade from 'attractive' to 'very attractive', supported by a price-to-earnings ratio of 21.17 and a price-to-book value of 1.06. The PEG ratio stood at a compelling 0.02, signalling that earnings growth is not yet fully reflected in the share price. Comparatively, peers such as Mufin Green and Ashika Credit trade at much higher multiples, reinforcing Leading Leasing Finance’s relative value appeal.
Financially, the company demonstrated robust growth with a 128.65% increase in operating profit in Q2 FY25-26 and an extraordinary 839.1% surge in profit after tax to ₹1.70 crores. Despite modest returns on capital employed (6.16%) and equity (5.00%), the strong profit growth and institutional ownership of 54.14% provide a solid foundation for the Hold rating.
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Recovery on 13 February Despite Market Weakness
On the final trading day of the week, 13 February, the stock rebounded 2.03% to close at ₹3.51 on volume of 659,496 shares, recovering from the prior day’s dip. This gain came even as the Sensex fell sharply by 1.40% to 36,532.48, underscoring the stock’s resilience amid broader market weakness. The price action suggested that the rating upgrade and valuation reset were being positively received by investors.
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Daily Price Comparison: Stock vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.3.54 | +6.63% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.3.55 | +0.28% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.3.48 | -1.97% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.3.44 | -1.15% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.3.51 | +2.03% | 36,532.48 | -1.40% |
Key Takeaways from the Week
Valuation Upgrade: The shift from an 'attractive' to 'very attractive' valuation grade, supported by a reasonable P/E of 21.17 and a PEG ratio of 0.02, was the primary catalyst for the rating upgrade and renewed investor interest.
Financial Strength: Exceptional quarterly profit growth of 839.1% in PAT and 128.65% in operating profit highlights operational leverage and improved cost management, underpinning the stock’s fundamental appeal.
Institutional Confidence: High institutional ownership at 54.14% signals strong backing from sophisticated investors, lending stability amid sector volatility.
Price Volatility: Despite the positive fundamentals, the stock experienced intraday fluctuations and a one-month return of -11.17%, reflecting ongoing market caution and sector headwinds.
Outperformance vs Sensex: The stock’s 5.72% weekly gain contrasted with the Sensex’s 0.54% decline, demonstrating relative strength and resilience in a challenging environment.
Conclusion: A Balanced Outlook with Emerging Positives
Leading Leasing Finance & Investment Company Ltd’s performance this week was characterised by a meaningful upgrade in investment rating and valuation attractiveness, which helped the stock outperform the broader market. The company’s strong quarterly earnings growth and solid institutional ownership provide a foundation for cautious optimism.
However, modest returns on capital and equity, combined with recent price volatility and sector challenges, counsel a balanced approach. The Hold rating reflects this nuanced view, recognising improved fundamentals without signalling a definitive buy. Investors should continue to monitor earnings trends and valuation metrics as the NBFC sector evolves.
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