Andhra-based stocks extend gains up to 62% in 4 sessions, riding high on TDP win
Shares of Andhra Pradesh-based firms continued surging despite muted headline indices. The rally, sparked by Chandrababu Naidu's election win, saw companies like KCP surge up to 40% in four sessions. Andhra Cements led gains with 10%, followed by Nelcast at 5.6%. KCP gained 0.6%, Andhra Sugars rose 6.6%, and others like Crane Infrastructure and Laurus Labs also traded in green.
Shares of Andhra Pradesh-based companies continued their rally at the bourses even as the headline indices remained muted on Monday. The surge, which started since Chandrababu Naidu's thumping victory in the state's assembly elections, meant that some of these companies including have rallied up to 40% in the last four sessions.was the top gainer in the pack with a jump of 10%, closely followed by , whose shares rose 5.6% in intraday trade today. While KCP was up 0.6%, gained 6.6%. , Manoj Vaibhav Gems, , , and a few other stocks were also trading in green.
KCP, a diversified business group with businesses in cement, heavy engineering, sugar, power, and hospitality, has gained the most (44%) since the election results were out last Tuesday.
Amara Raja Energy, whose Managing Director Jay Dev Galla was a former MP from TDP (Telugu Desam Party), has seen its shares rally over 20% post Naidu-led TDP secured a win in the assembly elections.
Amara Raja Energy and Mobility encompasses a diverse range of solutions and products, which includes energy storage solutions, Lithium-ion cell manufacturing, a wide range of EV chargers, Li-ion battery pack assembly, automotive and industrial lubricants, and exploration of new chemistries, among others.
Analysts say the stock has more upside left notwithstanding the rally seen in the past few days. "Amara Raja battery, even after all the run-up, is still an inexpensive stock. It is trading about 14-15 times and still has a long way to go," said Chakri Lokapriya, Managing Partner, RSB LLP.
Heritage, which has a direct connection to the TDP, is up about 5% in Monday's trade, extending the gains to over 60% in the last four to five days. is promoted by Nara Lokesh, son of TDP chief Chandra Babu Naidu.
The company 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.
It 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 80% this year.
Source: Stocks-Markets-Economic Times
