Heritage Foods, with a promoter stake of 41.30 percent at the end of the March quarter, has Nara Bhuvaneswari, wife of Chandrababu Naidu, as a key stakeholder.
Heritage Foods Ltd and Amara Raja Energy & Mobility Ltd extended their winning runs on Dalal Street on Thursday, as TDP leader N Chandrababu Naidu, an NDA ally, is expected to play a key role in forming the next government at the Centre. He is likely to secure a few ministries under the NDA 3.0 government.
Heritage Foods, with a promoter stake of 41.30 percent at the end of the March quarter, has Nara Bhuvaneswari, wife of Chandrababu Naidu, as a key stakeholder. She owned 2,26,11,525 shares or 24.37 percent stake in Heritage Foods at the end of the March quarter.
Additionally, Nara Lokesh, the son of N Chandrababu Naidu, is also one of Heritage Foods’ promoters. Nara Lokesh had a 10.82 percent stake in Heritage Foods as of March 31. Nara Brahmani, Naidu’s daughter-in-law, held 0.46 percent, while grandson Deevansh Nara held 0.06 percent in Heritage Foods. Naidu’s strong show in Andhra Pradesh has had a sentimental impact on this counter.
On Thursday, shares of Heritage Foods climbed 10 percent to hit a high of Rs 601.60. This stock has been rallying even before exit polls. In a four-day rally, the stock is up a strong 49 percent.
In the case of Amara Raja, there is no direct TDP link. However, the current managing director Galla Jayadev (Jay Galla) is a former TDP Parliamentary Party Leader. Galla, a two-time MP and head of Amara Raja group, did not contest Lok Sabha elections this time. Yet, the stock is rising on positive sentiments. At 10 am, shares of Amara Raja were trading 6.91 percent higher at Rs 1,300 on BSE. This stock has gained 22 percent in two straight days of gains.
The Telugu Desam Party (TDP), which won 16 Lok Sabha seats under Chandrababu Naidu, may seek a Speaker’s post besides health, rural development, and transport portfolios, sources told India Today on Wednesday. Against a magical mark of 272, BJP secured 240 seats while its NDA alliance settled with 292 seats. Narendra Modi is seen taking oath as PM on June 8, Saturday.
Shares of Telugu Desam Party (TDP)-related firms like KCP Ltd and Heritage Foods Ltd continued their rally on Thursday for the second consecutive session. This was due to news reports that TDP leader Chandrababu Naidu is expected to become the chief minister of Andhra Pradesh following the regional party’s resounding election victory and that he may endorse the National Democratic Alliance (NDA).
KCP Ltd share price surged by more than 18%, while Heritage Foods share price increased by 10% to reach a 52-week high. KCP Ltd share price opened at an intraday low of ₹216.05 apiece on BSE, touching an intraday high of ₹238.70 apiece.
Heritage Foods share price opened at ₹592.95 apiece, the stock touched an intraday low of ₹575.50, and a high of ₹601.60 apiece.
According to Ruchit Jain, Lead Research Analyst at 5paisa, post-election outcome, Heritage Foods share price has seen a sharp upmove with high volumes. The broader trend is positive, and hence, one can hold on to existing long positions. The support for the stock is placed around ₹500. KCP Ltd share price has registered a new high with good volumes, indicating a continuation of the uptrend.
As per the news report, Naidu has regained his top position in Andhra Pradesh. It is possible that his return will bring his ambitious dream project for Amaravati back to the forefront and bring about the development he has been discussing, which he also discussed during his previous term.
He had suggested Amaravati as the capital of Andhra Pradesh, but as we all know, he lost power when Mr. Reddy took over, and the state now has three capitals. The Street now thinks that Amaravati will once again come into focus, that he will take his oath, and that Amaravati itself will probably be the target.
The Chennai-based company is somewhat smaller in comparison to some of these bigger companies.
The business plan for KCP Cement and sugar make up the bulk of KCP’s operations, accounting for 96% of its overall income.
The engineering and hotel businesses are two of its smaller divisions.
According to news reports, TDP Chief Chandrababu Naidu formed the Heritage Group in 1992, with three commercial divisions—dairy, retail, and agriculture—under its flagship brand Heritage Foods.
N. Chandrababu Naidu’s son, Nara Lokesh, is one of Heritage Foods’ promoters. Heritage Nutrivet Limited (HNL), the company’s subsidiary, operates in the cattle feed sector.
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