TDP-Linked Stocks Surge Up to 20%: Heritage Foods and Amara Raja Soar on Election News

In a remarkable turn of events, stocks of companies associated with the Telugu Desam Party (TDP) have seen a significant surge. Heritage Foods and Amara Raja Energy & Mobility shares have soared up to 20% following reports that TDP chief Chandrababu Naidu is set to become the Chief Minister of Andhra Pradesh for the fourth term, potentially supporting NDA 3.0.

Election Results Drive Market Excitement

The news of Chandrababu Naidu’s anticipated return as Chief Minister and his likely support for the National Democratic Alliance (NDA) has fueled investor enthusiasm. This surge is part of a broader rally observed in TDP-linked firms. Prime Minister Narendra Modi’s third-term victory, albeit short of the majority by 32 seats, hinges on the support of allied parties, including TDP.

Market Performance and Company Backgrounds

At 1:24 PM, Amara Raja Energy’s stock was trading 12.5% higher at ₹1,217.55 on the National Stock Exchange (NSE). The company is managed by Galla Jayadev, a former TDP Parliamentary Party Leader and two-time MP, who opted not to contest in this year’s Lok Sabha elections. Jayadev has decided to focus on entrepreneurship, contributing to the nation’s development through innovation, job creation, and revenue generation.

Heritage Foods, another prominent TDP-related company, saw its shares surge nearly 20% to a record high of ₹544 on the NSE. Founded in 1992 by Chandrababu Naidu, Heritage Foods operates in dairy, retail, and agriculture. Nara Lokesh, Naidu’s son, is one of the promoters of Heritage Foods, which also has a presence in the cattle feed business through its subsidiary, Heritage Nutrivet Limited (HNL). The company’s dairy products are consumed across 11 states in India.

Stellar Stock Performance

Over the past three trading sessions, Heritage Foods’ share price has surged around 38%, driven by reports of Naidu’s impending fourth term as CM. This year, the stock has seen an impressive rally of nearly 80%, significantly outperforming the benchmark Nifty’s modest 3% return.

Conclusion

The rally in TDP-related stocks highlights the market’s positive response to the political developments in Andhra Pradesh. Investors are betting on the stability and growth potential that Naidu’s leadership might bring to the region.

What are your thoughts on the market reaction to political changes in Andhra Pradesh? Do you believe the surge in TDP-linked stocks is sustainable? Share your opinions and predictions in the comments below!