TDP-linked stocks soar up to 32% in 2 days after strong election performance
Heritage Foods and Amara Raja Energy stocks surged up to 32% following TDP's success in local elections, with ties to both companies through leadership connections. Heritage rose 10% to Rs 601, and Amara Raja climbed 9% to Rs 1,325 in Thursday's trading session.
Shares of and rallied up to 32% over the last two days following Andhra Pradesh's (TDP) securing a significant victory in local and emerging as a key player in the formation of the national government.Meanwhile, in Thursday's trade, surged 10% to Rs 601, while Amara Raja rose 9% to Rs 1,325 as both companies have TDP connections. Amara Raja's Managing Director Jay Dev Galla was a former MP from the party, while Heritage Foods has promoted by Nara Lokesh, son of party chief .
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Contrary to expectations, the (BJP) fell short of a simple majority, forcing it to rely on allies like TDP and to form the government. This situation benefits the allies, providing them with increased bargaining power at the Centre.
According to media reports, TDP, the largest constituent of the NDA after BJP, has drafted a list of demands that includes the post of Speaker, six berths in the Council of Ministers, and special status for Andhra Pradesh.
Sources indicate that TDP has decided to stake a claim to the post of Speaker, traditionally held by the ruling party at the Centre. Although this demand was not formally raised in the NDA meeting on Wednesday, it has been verbally conveyed by TDP chief N Chandrababu Naidu.
Amara Raja Energy and Mobility encompasses a diverse range of solutions, and products, which includes , , a wide range of EV chargers, Li-ion battery pack assembly, automotive and industrial lubricants, and exploration of new chemistries, among others.
The company is also one of the largest manufacturers of energy storage products for both industrial and automotive applications in India. It also makes India’s leading automotive battery brands Amaron and Powerzone, which are distributed through a large pan-India sales and service retail network.
In FY24, the battery company reported profit before tax of Rs 1,211 crore, while revenue for the same period stood at Rs 11,260 crore.
So far this year, the stock has delivered healthy returns to investors with a rise of nearly 59% year-to-date.
Meanwhile, Heritage Foods is one of India's leading value-added and branded dairy products companies. It has a presence in the cattle feed business through its subsidiary, Heritage Nutrivet Limited (HNL). Heritage Foods' milk and milk products, such as curd, ghee, paneer, and flavoured milk, among others, are consumed by more than 1.5 million households in 11 states across India.
The company clocked a growth of 17% and 83% in revenues and profit in the fiscal year 2023-24, respectively. Backed by the strong financial show, The stock jumped as much as 96% this year.
(Disclaimer: The views expressed by experts are their own and do not necessarily reflect those of The Economic Times)
Source: Stocks-Markets-Economic Times
