Synopsis: Small-cap company’s shares gained attention after its board announced the meeting in which it is going to consider a bonus and split issue.
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 is going to consider the bonus and split issues.
With Market Capitalization of Rs. 1,998.76 crore, A-1 Limited is trading at 1,738.05 per equity share, hitting an upper circuit of 5 percent from its previous closing price of Rs. 1,655.30 per equity share.
What’s the News?
The company has announced that its Board of Directors will meet on November 14, 2025, to consider and evaluate a proposal for the issuance of bonus shares to its existing shareholders, in the ratio of 5:1 (5 equity shares for each share held). This move, if approved, is expected to reward investors and enhance liquidity in the company’s stock.
The board will also consider 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 0.43 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 586x higher as compared to its industry P/E 56.6x.
In Q1FY26, the company reported revenue of Rs. 64.69 crore, a decline of 41 percent QoQ compared to Rs. 109.62 crore in Q4FY25 and a 9 percent YoY decline from Rs. 70.71 crore in Q1FY25. Profit for Q1FY26 stood at Rs. 0.6 crore, dropping 29 percent from Rs. 0.84 crore in Q4FY25 and from Rs. 0.84 crore in Q1FY25, reflecting pressure on both revenue and profitability.
Written By Akshay Sanghavi
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