Multibagger Chemical Stock Hit 20% Upper Circuit As Company Forays into Electric Vehicle Sector

On Monday, benchmark indices Nifty 50 and Sensex rose around 0.8 per cent each in a broad-based rally, supported by expectations of U.S. rate cuts and progress in U.S.-China trade negotiations. Amid the market uptrend, shares of A-1 Limited, formerly known as A-1 Acid Limited, were locked in the 20 per cent Upper Circuit after the company announced its strategic diversification into India’s expanding electric vehicle (EV) sector.

The Ahmedabad-based listed chemical trading and Logistics company has increased its partnership interest or shareholding in A-1 Sureja Industries, a manufacturer of battery-operated two-wheelers, from 45 per cent to 51 per cent. This move marks A-1 Limited’s entry into the EV industry, making it one of India’s first listed chemical companies to hold direct equity in a certified EV manufacturing enterprise. The stake increase is subject to regulatory and statutory approvals.

A-1 Limited, with over five decades of presence in India’s chemical value chain, focuses on disciplined capital management, safety compliance, and nationwide logistics. As of 2025, the company holds a market capitalization of approximately Rs 1,200 crore, creating a strong base for its new diversification phase.

A-1 Sureja Industries, also headquartered in Ahmedabad, is transitioning from research and development to commercial-scale electric two-wheeler production. The company projects a Compound Annual Growth Rate (CAGR) of over 250 per cent, with an estimated valuation of around Rs 100 crore.

Commenting on the development, Mr. Anant Patel, Director of A-1 Limited, said, “Our diversification into EV manufacturing reflects A-1 Limited’s commitment to sustainability, innovation, and long-term value creation. With our experience in chemical logistics, safety systems, and industrial compliance, we are positioned to support clean mobility and contribute to India’s green future.”

A-1 Limited plans to evolve into a multi-vertical green enterprise by 2028, combining clean mobility with low-emission chemical operations. This transformation aligns with its goal of becoming a future-ready Mid-Cap ESG-focused company.

A-1 Sureja Industries manufactures the ARAI-approved Hurry-E Electric Motorcycle, priced between Rs 75,000 and Rs 1.40 lakh. The model includes smart Battery Management Systems (BMS), reverse mode, and diagnostic features, catering to daily commuters and fleet operators. The company holds a patent for its design valid until 2028. The model is suitable for quick commerce and bike Taxi segments, both expanding rapidly in India’s urban mobility landscape.

India’s electric two-wheeler market has grown at a 35 per cent CAGR from FY 2020 to FY 2025, crossing 1.5 million units, and is projected to exceed 5 million units by FY 2028.

On Monday, A-1 Limited’s stock was locked in the 20 per cent upper circuit at Rs 1,263.70 per share as of 1:04 pm IST. The stock has delivered multibagger returns of 248 per cent over the past year and is up 175 per cent year-to-date (YTD).

Disclaimer: The article is for informational purposes only and not investment advice.