Stocks Linked to TDP Chief Chandrababu Naidu Surge After Election Win

The Indian equity market saw notable rallies in the stock prices of Heritage Foods and Amara Raja Energy linked to Telugu Desam Party (TDP) chief Chandrababu Naidu after the announcement of election results.

Heritage Foods shares surged by 20% to ₹546.95, hitting an upper circuit on the exchanges. The company, founded by Naidu in 1992, operates in dairy, retail, and agriculture.

On the other hand, Amara Raja Energy, managed by Galla Jayadev, also saw a 13.04% increase to ₹1,224.40. Jayadev is a former TDP Parliamentary Party Leader.

After the TDP won 135 seats in Andhra Pradesh state elections, speculation suggests Naidu may become Chief Minister again. The party is likely to form a government with BJP and Janasena Party in Andhra Pradesh.

During a press conference in Vijayawada, Naidu extended his support to the National Democratic Alliance (NDA) led by Prime Minister Narendra Modi, acknowledging changes in Indian politics.

Heritage Foods, with divisions in dairy and renewable energy sectors, saw positive financial growth. Naidu’s wife, Bhuvaneswari Nara, holds a significant stake in the company.

Equity market expert Ravi Singh anticipates further rallies in the stocks of Heritage Foods and Amara Raja Energy due to their strong fundamentals and technical trends.

Heritage Foods reported an 83.6% growth in PAT for FY24, reaching ₹106.50 crore, whereas Amara Raja Energy witnessed a 61.4% increase in quarterly net profit, showcasing strong market presence.

The stocks of both companies have surged significantly in the recent period, with Heritage Foods leading a rise of 73% over the past six months.