Synopsis:
A small-cap company’s shares are in focus after its board approved a bonus issue along with a stock split, drawing strong investor attention.
A small-cap company that is in the wholesale trading of Acid & Chemicals and also in the transportation business, came into the spotlight after announcing that its board approved the bonus and split issues.
With Market Capitalization of Rs. 2,088.17 crore, A-1 Limited is trading at 1,815.80 per equity share, hitting an upper circuit of 5 percent from its previous closing price of Rs. 1,729.35 per equity share.
What’s the News?
The company announced that its Board of Directors, on November 14, 2025, approved a bonus issue in the ratio of 1:3, granting shareholders three additional equity shares for every one held. The move, subject to approval, is aimed at rewarding investors and improving liquidity in the stock.
The board also approved a stock split in the ratio of 1:10, meaning each existing one equity share of the company may be split into up to ten equity shares, aiming to enhance liquidity and make the stock more affordable for investors.
About the Company
A-1 Limited, founded in 1975 and headquartered in Ahmedabad, trades a wide range of chemicals and acids in India and internationally, including nitric acid, sulphuric acid, methanol, urea, and other industrial chemicals. The company also operates in transportation and exports its products. Formerly known as A-1 Acid Limited, it was renamed A-1 Limited in October 2024.
A return on equity (ROE) of about 7.82 percent, a return on capital employed (ROCE) of about 10.6 percent and debt to equity ratio of 0.35 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 832x higher as compared to its industry P/E 62.7x.
The company reported revenue of Rs. 63.14 crore in Q2FY26, down 18.8 percent YoY from Rs. 77.76 crore and 2.4 percent QoQ from Rs. 64.69 crore, indicating continued top-line softness. Profit dropped sharply to Rs. 0.07 crore in Q2 FY26, declining 92.8 percent YoY from Rs. 0.97 crore in Q2 FY25 and 88.3 percent QoQ from Rs. 0.60 crore in Q1 FY26, reflecting significant margin pressure during the quarter.
Written By Akshay Sanghavi
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