The stock of Heritage Foods, a company based in Andhra Pradesh, has skyrocketed by over 64%, or ₹259 per share, within just five trading sessions. This impressive rise in the stock price has significantly increased the family fortune of N Chandrababu Naidu, the Chief Minister-designate, by ₹856 crore.
On Friday, Heritage Foods’ shares were locked in a 10% upper circuit, reaching a new 52-week high of ₹661.75 on the BSE. On May 31, the stock had closed at ₹402.80. Between Monday, June 3, and Friday, June 7, the share price experienced a remarkable rally.
Family Holdings and Gains
Chandrababu Naidu’s family owns 35.71% of Heritage Foods, which amounts to 3,31,36,005 shares. With each share rising by ₹259, the total gain for the family has reached ₹856 crore.
Naidu’s son, Nara Lokesh, is a promoter of Heritage Foods with a 10.82% stake as of March 31, 2024. Other family members who are promoters include Bhuvaneshwari Nara (wife of Chandrababu Naidu) with a 24.37% stake, and Devaansh Nara (their grandchild) with a 0.06% stake. Nara Brahmani, Naidu’s daughter-in-law, holds a 0.46% stake in the company.
Political Victory Fuels Stock Surge
The surge in Heritage Foods’ stock price coincided with Naidu’s sweeping victory in the recent assembly elections. Naidu’s Telugu Desam Party (TDP), in alliance with the Bharatiya Janata Party (BJP) and Pawan Kalyan’s Jana Sena Party (JSP), won 165 out of 175 seats in the Andhra Pradesh assembly election, defeating YSRCP’s Jagan Mohan Reddy.
Company Background and Performance
Founded by Chandrababu Naidu in 1992, Heritage Foods operates in two main areas: dairy and renewable energy. In the financial year 2022-23, the company reported an annual turnover of ₹3,201 crore. Heritage’s milk and milk products are available in several states, including Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand, and Uttar Pradesh.
With the recent stock rally, Heritage Foods has entered a strongly overbought zone, with the day’s Relative Strength Index (RSI) and Money Flow Index (MFI) both above 95. Typically, a number above 70 indicates an overbought condition. The stock is also trading above its 50-day and 200-day moving averages.
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