Synopsis:
A-1 Ltd surged after securing a Rs. 127.5 crore industrial urea order from Sai Baba Polymer Technologies. The contract boosts revenue visibility, supporting its strong multibagger performance and expansion in the automotive-chemical value chain.
This company is in the wholesale trading of Acid & Chemicals and also in the transportation business, and it runs a transportation division that supports chemical logistics and is now in the focus after securing an order worth Rs. 127.5 cr.
With market capitalization of Rs. 2,798 cr, the shares of A-1 Ltd are currently trading at Rs. 2,433.10 per share, locked at 5% upper circuit, from its previous close of Rs. 2,317.25 per share.
The stock has delivered an impressive 557% return over the past year. Over five years, it has surged 3,949%. In the last six months, it gained 337%, and in the past month alone, it returned 93%.
About the order
A-1 Limited (formerly A-1 Acid Limited) has announced that it has secured a major order worth Rs. 127.5 crore (base value) from Sai Baba Polymer Technologies for the supply of 25,000 MT of Industrial Urea Automobile Grade. With GST at 18%, the total order value amounts to Rs. 150.45 crore.
The order is structured as an open delivery schedule, allowing dispatch as per the client’s requirements. This large contract strengthens the company’s revenue visibility and reflects rising demand in its Industrial Urea (automobile grade) segment across multiple manufacturing units, including Bengaluru, Chennai, Raipur, Coimbatore, Cuttack, Gwalior, Patancheru, Mumbai, Kolkata, Kanpur and Mangalore.
The breakup of A-1 Ltd’s 25,000 MT Industrial Urea (Automobile Grade) order across 11 manufacturing units. Bengaluru and Chennai each will supply 2,500 MT, while Raipur, Coimbatore, Cuttack, Gwalior, Patancheru, Kolkata and Kanpur will supply 2,250 MT each. Mumbai and Mangalore will supply 2,000 MT each.
A-1 Limited highlighted that the order aligns with its strategy to expand within the automotive-chemical value chain while maintaining a diversified customer base. The company also clarified that the transaction is part of its normal business operations and does not involve any related-party or promoter-group interest.
About the company
A-1 Ltd (formerly A-1 Acid Limited) is a specialty chemicals company based in Ahmedabad, engaged in manufacturing and supplying industrial chemicals with a strong presence across multiple regions in India. The company serves diversified industries, including automotive, polymers, and chemical processing. With an expanding product portfolio such as Industrial Urea and a growing nationwide distribution network.
The company reports a ROCE of 10.6% and an ROE of 7.82%, while also maintaining a strong dividend payout ratio of 84%, reflecting consistent shareholder returns.
The company posted a weak set of numbers for Q2 FY25. Sales declined 19% YoY to Rs. 63.1 crore, while EBITDA dropped 52% YoY to Rs. 1.19 crore. Net profit fell sharply, down 93% YoY to just Rs. 0.07 crore, with EPS also plunging 93% to Rs. 0.06 compared to Rs. 0.84 a year earlier.
Written by Manideep Appana
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