On Friday, shares of Heritage Foods were locked in 10% upper circuit and hit a fresh 52-week high of Rs 661.75 on the BSE. On May 31, Friday (a day before the final phase of polling and exit polls) the stock had ended at Rs 402.80. Between Monday, June 3 and Friday June 7, the share price has seen an unbeaten rally.
Chief Minister-designate Chandrababu Naidu’s family’s total holding in the company stands at 35.71%, translating into 3,31,36,005 shares. With each share gaining by Rs 259, the total gains have mounted to Rs 858 crore.
Naidu’s son Nara Lokesh is a promoter of Heritage Foods with nearly 10.82% stake as of March 31, 2024, according to the shareholding data available on the BSE. The other promoters include Bhuvaneshwari Nara and Devaansh Nara, who hold 24.37% and 0.06% stake, respectively, in the company. While the former is the wife of Chandrababu Naidu, the latter is their grandchild. Nara Brahmani who holds 0.46% stake in Heritage Foods is the daughter-in-law.
The stock has been on an upward trend on Naidu’s sweeping win in the assembly elections. Naidu’s Telugu Desam Party (TDP) in alliance with the Bharatiya Janata Party (BJP) and Pawan Kalyan’s Jana Sena Party (JSP) clinched 165 out of 175 seats in the Andhra Pradesh assembly election, defeating YSRCP’s Jagan Mohan Reddy.The company was founded by Chandrababu Naidu in 1992 and it has two business divisions — dairy and renewable energy. The annual turnover of Heritage Foods stood at Rs 3,201 crore in the financial year 2022-23. Currently, Heritage’s milk and milk products have a market presence in Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand & Uttar Pradesh.With this rally, the stock has moved into a strongly overbought zone with the day’s RSI and MFI hovering over 95. A number above 70 is considered to be overbought. The stock is also trading above its 50-day and 200-day moving averages.Also Read: Gold Price Today: China pulls plug on buying, yellow metal plunges Rs 1,200/10 gram, silver by Rs 3,300/kg
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