 "Heritage Foods shares soar; Naidu's family wealth rises by Rs 1,200 cr")
Shares of Heritage Foods Ltd have seen a significant surge, doubling in the past 12 trading sessions. Promoted by the family of Andhra Pradesh's Chief Minister-elect Chandrababu Naidu, the stock hit another 10 per cent upper circuit at Rs 727.9 on Monday, up from Rs 354.5 on May 23.
On Monday, according to CNBCTV18, a large block deal occurred, with 4.4 million shares (4.8 per cent of total equity) changing hands at an average price of Rs 725 per share, valued at Rs 319.6 crore. The identities of the buyers and sellers involved in this transaction remain unclear.
Chandrababu Naidu's wife, Bhuvaneswari Nara, and son, Nara Lokesh, hold 24.37 per cent and 10.82 per cent stakes in Heritage Foods, respectively. Their combined stake, valued at just over Rs 1,100 crore on May 23, has now surged to over Rs 2,300 crore, reflecting the company's bullish performance.
The stock has surged by 95 per cent in the eight trading sessions since May 29, following exit polls that predicted Naidu's return as Chief Minister. Naidu's Telugu Desam Party (TDP), in alliance with Pawan Kalyan's Jana Sena Party and the Bharatiya Janata Party (BJP), secured a majority in the 175-member Assembly, boosting investor confidence.
As a result, shares of many Andhra Pradesh-linked companies have risen, with Heritage Foods reaching a record high. The company, which went public in November 1996, has seen its shares hit historic highs in anticipation of Naidu's governance.
In 2024, Heritage Foods' stock delivered nearly 140 per cent returns, marking its best calendar year performance since 2012, when it surged over 230 per cent. Analysts had predicted that the stock could surpass the Rs 800 mark, driven by Naidu's expected influence at both the state and national levels.
Historical data shows that the company's shares experienced significant gains during Naidu's previous tenures as Chief Minister. From 1995 to 2004 and from 2014 to 2019, the stock saw substantial growth, although it also faced declines in certain years.
Chandrababu Naidu, who previously served as Chief Minister from 1995 to 2004 and from 2014 to 2019, is set to assume office again, bolstering market optimism. His political experience and alliance with the National Democratic Alliance (NDA) are expected to have a positive impact on businesses linked to Andhra Pradesh.