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.
KCP Ltd share price surged by more than 18 per cent, while Heritage Foods share price increased by 10 per cent to reach a 52-week high. KCP Ltd share price opened at an intraday low of Rs 216.05 apiece on BSE, the stock touched an intraday high of Rs 238.70 apiece.
KCP Ltd has a significant presence in Andhra Pradesh. The company has a cement plant near Amaravati which is one of the three capitals on Andhra Pradesh. Visakhapatnam is the administrative capital of the state, Kurnool is judicial capital and Amaravati is legislative capital.
The TDP promised to reinstate Amaravati as the capital city. The incumbent government had shelved plans of development of Amaravati as capital.
KCP Ltd is primarily into cement manufacturing and sugar production which account for around 96 per cent of its total revenues. Chennai-based KCP Ltd has a total cement production capacity of 4.3 million tonnes per annum. It has a cement plant strategically located near Amaravati.
Meanwhile, in Thursday’s trade, Heritage Foods surged 10 per cent to Rs 601, while Amara Raja rose 9 per cent to Rs 1,325 as both companies have TDP connections. Amara Raja’s Managing Director Jay Dev Galla was a former MP from the party, while Heritage Foods has promoted by Nara Lokesh, son of party chief Chandra Babu Naidu.
Meanwhile, Heritage Foods is one of India’s leading value-added and branded dairy products companies. It has a presence in the cattle feed business through its subsidiary, Heritage Nutrivet Limited (HNL). Heritage Foods’ milk and milk products, such as curd, ghee, paneer, and flavoured milk, among others, are consumed by more than 1.5 million households in 11 states across India.
The company clocked a growth of 17 per cent and 83 per cent in revenues and profit in the fiscal year 2023-24, respectively. Backed by the strong financial show, The stock jumped as much as 96% this year.
Naidu founded Heritage Foods in 1992. The company is into dairy products production and renewable energy segment. Heritage’s milk and milk products are sold in Andhra Pradesh, Telangana, Kerala, Tamil Nadu, Karnataka, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand & Uttar Pradesh.
Amara Raja Energy and Mobility encompasses a diverse range of solutions, and products, which includes energy storage solutions, Lithium-ion cell manufacturing, a wide range of EV chargers, Li-ion battery pack assembly, automotive and industrial lubricants, and exploration of new chemistries, among others.
The company is also one of the largest manufacturers of energy storage products for both industrial and automotive applications in India. It also makes India’s leading automotive battery brands Amaron and Powerzone, which are distributed through a large pan-India sales and service retail network.
In FY24, the battery company reported profit before tax of Rs 1,211 crore, while revenue for the same period stood at Rs 11,260 crore.
So far this year, the stock has delivered healthy returns to investors with a rise of nearly 59 per cent year-to-date.
The TDP-BJP-JSP alliance won 165 out of 175 seats in the Andhra Pradesh assembly election.