TDP-linked stocks: Heritage Foods, Amara Raja, KCP rally up to 10%, extend recent gains. Here's why

Heritage Foods Ltd, Amara Raja Energy & Mobility Ltd and KCP Ltd, on Thursday extended their winning runs on Dalal Street, as the TDP leader N Chandrababu Naidu -- an NDA ally, is seen playing a key role in the formation of next government at Centre. He is expected to get a few ministries under the NDA 3.0 government.

Heritage Foods, whose promoter stake stood at 41.30 per cent at the end of March quarter, has Nara Bhuvaneswari, the wife of Chandrababu Naidu, as key stakeholder. She owned 2,26,11,525 shares or 24.37 per cent stake in Heritage Foods at the end of March quarter.

Besides, Nara Lokesh, the son of N Chandrababu Naidu, is also one of Heritage Foods promoters. Nara Lokesh had 10.82 per cent stake in Heritage Foods as on March 31. Nara Brahmani, Naidu's daughter-in-law, held 0.46 per cent while grandson Deevansh Nara also held 0.06 per cent in Heritage Foods. Naidu's strong show in Andhra Pradesh has had a sentimental impact of this counter.

On Thursday, shares of Heritage Foods shares climbed 10 per cent to hit a high of Rs 601.60. This stock has been rallying even before exit polls. In four-day rally, the stock is up a strong 49 per cent.

In the case of Amara Raja, there is no direct TDP link. But the prevailing managing director Galla Jayadev (Jay Galla) is a former TDP Parliamentary Party Leader. Galla, a two-time MP and head of Amara Raja group did not contest Lok Sabha elections this time. Yet, the stock is rising on positive sentiments. At 10 am, shares of Amara Raja were trading 6.91 per cent higher at Rs 1,300 on BSE. This stock has gained 22 per cent in two straight days of gains.

The Telugu Desam Party (TDP), which won 16 Lok Sabha seats under Chandrababu Naidu, may seek a Speaker's post besides health department, rural development, and transport portfolios, sources told India Today on Wednesday. Against a magical mark of 272, BJP managed to secure 240 seats while its NDA alliance settled with 292 seats. Narendra Modi is seen taking oath as PM on June 8, Saturday.

Meanwhile, cement maker KCP Ltd also gained 9 per cent today due to its presence in Andhra Pradesh market. With TDP pledging to restore Amaravati as the capital city, property prices have reportedly surged by 20 to 30 percent in the past few days. Naidu initially planned to develop Amaravati as a greenfield capital at a cost of over Rs 50,000 crore, but the state's poor finances hindered progress.