Andhra-related firms extend stock rally post Chandrababu Naidu's poll victory

KCP stock surged nearly 50% in the last four sessions, with Amara Raja Energy stock gaining over 32%, Andhra Sugars advancing 21%, Avanti Feeds up 28%, Laurus Lab gaining 10%

Moneycontrol News

June 10, 2024 / 14:52 IST

Nelcast Ltd and Kallam Textiles Ltd, with registered offices in Gudur, Tirupati district, witnessed a rally following election results.

Shares of Andhra Pradesh-based firms surged for the fourth consecutive session as the Telugu Desam Party, led by N. Chandrababu Naidu, emerged victorious in the recently concluded Andhra Pradesh assembly polls.

KCP stock surged nearly 50% in the last four sessions, with Amara Raja Energy stock gaining over 32%, Andhra Sugars advancing 21%, Avanti Feeds up 28%, Laurus Lab gaining 10%, Nelcast advancing 13%, Kallam Textiles up 19%, Virat Crane Industries up 23%, Andhra Cements up 24%, Crane Infrastructure advancing 40%, Manoj Vaibhav Gems 'N' Jewellers gaining 7%, and Andhra Petrochemical up 32%.

KCP, a company with interests in cement, sugar, hospitality, and engineering, operates a cement plant near Amaravati, one of the proposed capitals for the State. Its main revenue drivers are cement and sugar, which account for 96% of its total income. While its engineering and hotel divisions are smaller, they are gaining investor attention. However, analysts are skeptical about the sustainability of this rally and advise caution.

Amara Raja Energy & Mobility Ltd, headquartered in Tirupati, has Galla Jayadev (Jay Galla) as its Managing Director. Galla, a former TDP Parliamentary Party Leader and a two-time MP, did not contest the recent Lok Sabha elections.

According to AceEquity, The Andhra Sugars, headquartered in Venkatarayapuram, West Godavari District, witnessed a surge in its shares post-elections. Similarly, Avanti Feeds Ltd and Laurus Labs Ltd, both based in Visakhapatnam, also experienced a rally in their shares.