Political Power Shift Triggers Surge in Heritage Foods and KCP Ltd Stock Prices

Following reports indicating the political power shift in Andhra Pradesh, the stock prices of Heritage Foods and KCP Ltd surged for the second consecutive trading session. The news suggested that Telugu Desam Party leader Chandrababu Naidu is likely to assume the role of the Chief Minister of Andhra Pradesh after the regional party’s impressive victory. It is also speculated that Naidu may reaffirm his support for the National Democratic Alliance (NDA).

The shares of KCP Ltd witnessed an increase of over 18%, while Heritage Foods’ stock price rose by 10% to reach a new 52-week high. In the trading session, KCP Ltd’s stock opened at Rs 216.05 per share and surged to an intraday high of Rs 238.70 per share.

On the other hand, Heritage Foods opened at Rs 592.95 per share, experiencing an intraday low of Rs 575.50 and reaching a high of Rs 601.60 per share. Market analysts like Ruchit Jain from 5paisa suggested that Heritage Foods has shown a significant uptrend post the election outcome, with considerable trading volume. The stock’s overall trend appears positive, with key support around Rs 500.

Chandrababu Naidu, the leader of the Telugu Desam Party, established the Heritage Group in 1992, incorporating three main business divisions: dairy, retail, and agriculture under Heritage Foods. Nara Lokesh, the son of N. Chandrababu Naidu, is one of the prominent promoters of Heritage Foods. The company’s subsidiary, Heritage Nutrivet Limited (HNL), operates in the cattle feed sector.

Chandrababu Naidu’s ambitious vision for Amaravati may regain momentum if he assumes the role of Chief Minister. Amaravati, which Naidu proposed as the capital of Andhra Pradesh, faced changes in governance resulting in multiple capitals under the current administration. Market observers anticipate a renewed focus on Amaravati with Naidu’s potential return to power.