With TDP back in saddle, scrips of companies linked to party race ahead

HYDERABAD: The resounding victory of Telugu Desam Party (TDP) and its chief, N Chandrababu Naidu, in the Lok Sabha and assembly elections has not just marked his return to power after five years but is also boosting the fortunes of companies with links to the party.
Stocks of Heritage Foods, a listed company founded by Naidu in 1992, soared nearly 36% in the last three trading sessions to hit its 52-week high of Rs 547 on the BSE on Wednesday.The company is now helmed by his wife N Bhuvaneswari as MD and daughter-in-law N Brahmani as executive director.
The company’s scrip gained Rs 147 in the past three days over its Friday’s close at Rs 403. On Wednesday, it closed at the 20% upper circuit after poll results the previous day made it clear that TDP and Naidu had emerged as king-makers in the coalition NDA govt at the Centre.

Another scrip that saw significant gains on Wednesday was Amara Raja Energy & Mobility (formerly Amara Raja Batteries), which gained 12% to close at Rs 1,216. In the past three days, however, the Amara Raja scrip saw a modest gain of nearly 3%.
Amara Raja Energy is promoted by former TDP MP Jayadev Galla, who quit politics earlier this year as it was taking a toll on his business. The company took a hit after Jagan Mohan Reddy’s YSRCP came to power in Andhra Pradesh in 2019. The two-time TDP MP from Guntur had in Jan also announced his decision to not contest the 2024 elections due to personal reasons. He had cited the ‘weaponisation’ of govt agencies as one of the reasons for withdrawing from political life. His mother Galla Aruna Kumari had bagged the Chandragiri assembly seat four times and was also a minister in the TDP govt.