Synopsis:
The shares of the company jumped 20 percent followed by an acquisition and the announcement of diversification into the clean mobility sector for better future proceeds.
The shares of this chemical company which is one of India’s largest traders and distributors of industrial acids and chemicals hit a 20 percent upper circuit, following a strategic acquisition and its diversification from its primary chemical business to clean mobility.
With a market cap of Rs 1,453 crore, the shares of A-1 ltd hit the 20 percent upper circuit at the price of Rs 1,264 today compared to its previous day close of Rs 1,053 . The shares have also hit its 52 week high today. It has provided a 3 year return of Rs 316 percent.
All about strategic diversification
A-I Limited has acquired an additional 6 percent stake in A-1 Sureja Industries, a manufacturer of battery-operated two-wheelers. It earlier owned 45 percent stake now taking it to 51 percent, making it a wholly owned subsidiary of the firm, evolving into a multi-vertical green enterprise, integrating low-emission chemical operations with clean mobility solutions.
A-1 Sureja Industries has a patent in its name for exclusive design till the year 2028, and as the quick commerce/bike taxi is gaining a new heights in India the company wants to be a part of the growth story, hence the acquisition.
The product range that the company targets is Rs. 75,000 to Rs. 1.40 lakh price segment by balancing performance and affordability for mass buyers. Through Hurry-E Electric Motorcycle, approved by the Automotive Research Association of India (ARAI), is the initial entry into the high-potential electric two-wheeler segment.
This model integrates smart Battery Management Systems (BMS), reverse mode, and diagnostic features, which are designed for daily commuters and fleet users seeking reliability, performance, and affordability.
Financials and others
The Revenue from sales is Rs 64.7 Crore in Q1 FY26 versus Rs 70.71 crore in Q1 FY25 which is a fall of about 8.51 percent YoY basis. Similarly, there has been a decrease in Net profit of 12 percent when we compare the Q1 FY25 profit of Rs 84 lakh with the Q1FY26 profit of Rs 60 lakh.
The shares of the company stands at a PE of 426 which raises questions about its valuation however, we are yet to see whether the company’s growth strategy justifies its valuation.
Written by Leon Mendonca
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