Heritage Foods and Amara Raja Energy saw their shares surge up to 20% on Wednesday after the Telugu Desam Party (TDP) won big in Andhra Pradesh’s assembly elections and became a key player in forming the national government.
Heritage Foods’ stock jumped 20%, while Amara Raja’s climbed nearly 13%. These companies are connected to TDP: Amara Raja’s MD, Jay Dev Galla, was a former TDP MP, and Heritage Foods was founded by Nara Lokesh, son of TDP leader Chandra Babu Naidu.
With the Bharatiya Janata Party (BJP) falling short of a majority, it now needs allies like TDP to form the government, giving TDP more influence at the national level.
Amara Raja Energy offers a wide range of products, including energy storage solutions, Lithium-ion cell manufacturing, EV chargers, and automotive and industrial lubricants. It is one of India’s largest energy storage product manufacturers and makes popular automotive battery brands like Amaron and Powerzone. In FY24, Amara Raja reported a profit before tax of Rs 1,211 crore and revenue of Rs 11,260 crore. The stock has risen nearly 48% year-to-date.
Heritage Foods, a leading dairy products company in India, also has a presence in the cattle feed business through its subsidiary, Heritage Nutrivet Limited. Its milk products are consumed by over 1.5 million households in 11 states. The company reported 17% revenue growth and 83% profit growth in FY24, with the stock jumping 80% this year.
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