Heritage Foods surges another 10% as TDP's Chandrababu Naidu becomes new CM

Heritage Foods share price have been on a roll, gaining 47 percent in the last month, and 80 percent in the last three months.

Shares of Heritage Foods were locked in at 10 percent upper circuit to Rs 601 on June 6 for the second session in a row. The upbeat sentiment comes after it become certain that Telugu Desam Party (TDP) leader Chandrababu Naidu will become Chief Minister of Andhra Pradesh after the recently concluded assembly elections.

But what's the link? The dairy products manufacturers Nara Bhuvaneshwari and Nara Lokesh are the wife and son of the Chief Minister-elect respectively. Shareholding pattern at the end of March shows that Nara Bhuvaneshwari had a 24.37 percent stake while son had a 10.82 percent stake in the company.

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Given the developments, trading volumes have seen a sharp surge. As many as 56 lakh shares changed hands on June 6, way higher than the one month average of 27 lakh shares. During yesterday's trade, about 1 crore share changed hands, Moneycontrol data showed.

Heritage Foods reported a significant year-on-year growth of 83.6 percent in its consolidated profit after tax for the financial year FY24, reaching Rs 106.50 crore.

The company's revenue rose by 17.1 percent YoY, totaling Rs 3,793.9 crore. Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 51.5 percent to Rs 209.50 crore, with the margin improving by 125 basis points to 5.52 percent in FY24.

At about 10:40 am, shares of the company came out of upper circuit to trade ta Rs 598, higher by 97 percent form the last close on the NSE. Heritage Foods share price have been on a roll, gaining 47 percent in the last month, and 80 percent in the last three months.

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