KCP, Heritage Foods extend rally for second straight day as TDP gains power in Andhra Pradesh

  • Shares of TDP-related firms KCP Ltd and Heritage Foods Ltd surged on news of Chandrababu Naidu possibly becoming Andhra Pradesh's chief minister. KCP Ltd share price rose over 18% and Heritage Foods hit a 52-week high with a 10% increase.

Dhanya Nagasundaram
First Published6 Jun 2024, 09:45 AM IST
Stock market update: TDP-linked stocks KCP Ltd and Heritage Foods Ltd rallied for the second day after reports of Chandrababu Naidu likely becoming Andhra Pradesh's CM. Heritage Foods saw a significant upmove post-election, while KCP Ltd hit a new high.
Stock market update: TDP-linked stocks KCP Ltd and Heritage Foods Ltd rallied for the second day after reports of Chandrababu Naidu likely becoming Andhra Pradesh’s CM. Heritage Foods saw a significant upmove post-election, while KCP Ltd hit a new high.

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. 

Also Read: Multibagger NBCC share price climbs over 8% after company bags new orders worth 491 crore

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. 

Also Read: Cochin Shipyard, NBCC, BEL, NTPC among other PSU stocks rally up to 8%; Nifty CPSE jumps 4%

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. 

Also Read: Stocks to buy or sell: KNR Constructions to ABFRL — Sumeet Bagadia recommends five breakout stocks today

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.

Also Read: Nifty 50 continues its wild swings; how should investors play this volatility?

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.

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₹295 Cr

$23 B

$65 M

3.36%

$65.47 B

$2.5 M

₹80 Cr

1.4%

₹773 Cr

₹2,705 Cr

₹1 Cr

₹14,370 Cr

₹5.74 T

First Published:6 Jun 2024, 09:45 AM IST
HomeMarketsStock MarketsKCP, Heritage Foods extend rally for second straight day as TDP gains power in Andhra Pradesh

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