Shares of Telugu Desam Party- (TDP) related firms like KCP Ltd and Heritage Foods Ltd on Thursday continued their rally on Thursday for the second consecutive session. This was due to news reports that TDP leader Chandrababu Naidu is expected to become the chief minister of Andhra Pradesh following the regional party's resounding election victory, and that he may endorse the National Democratic Alliance (NDA).
KCP Ltd share price surged by more than 18%, while Heritage Foods share price increased by 10% to reach a 52-week high. KCP Ltd share price opened at an intraday low of ₹216.05 apiece on BSE, the stock touched an intraday high of ₹238.70 apiece.
Heritage Foods share price opened at ₹592.95 apiece, the stock touched an intraday low of ₹575.50, and an high of ₹601.60 apiece.
According to Ruchit Jain, Lead Research Analyst at 5paisa, post-election outcome, Heritage Foods share price has seen a sharp upmove with high volumes. The broader trend is positive, and hence, one can hold on to existing long positions. The support for the stock is placed around ₹500. While the KCP Ltd share price has registered a new high with good volumes, indicating a continuation of the uptrend.
As per the news report, Naidu has regained his top position in Andhra Pradesh. It is possible that his return will bring his ambitious dream project for Amaravati back to the forefront and bring about the development he has been discussing, which he also discussed during his previous term.
He had suggested Amaravati as the capital of Andhra Pradesh, but as we all know, he lost power over them when Mr. Reddy took over, therefore the state now has three capitals. The Street now thinks that Amaravati will once again come into focus, that he will take his oath, and that Amaravati itself will probably be the target.
The Chennai-based company is somewhat smaller in comparison to some of these bigger companies.
The business plan for KCP Cement and sugar make up the bulk of KCP's operations, accounting for 96% of its overall income.
The engineering and hotel businesses are two of its smaller divisions.
According to news reports, TDP Chief Chandrababu Naidu formed the Heritage Group in 1992, with three commercial divisions—dairy, retail, and agriculture—under its flagship brand Heritage Foods.
N. Chandrababu Naidu's son, Nara Lokesh, is one of Heritage Foods' promoters. Heritage Nutrivet Limited (HNL), the company's subsidiary, operates in the cattle feed sector.
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