Shares of Heritage Foods hit the 10% upper circuit at Rs 601 on June 6 for the second consecutive session. The surge in sentiment follows the confirmation that Telugu Desam Party (TDP) leader Chandrababu Naidu will become the Chief Minister of Andhra Pradesh after the recent assembly elections.
The connection lies in the ownership of the dairy products manufacturer. Nara Bhuvaneshwari, Naidu’s wife, holds a 24.37% stake, while their son, Nara Lokesh, holds a 10.82% stake in Heritage Foods, as per the shareholding pattern at the end of March.
Market Activity and Financial Performance
Trading volumes have spiked significantly, with 56 lakh shares changing hands on June 6, compared to a one-month average of 27 lakh shares. On the previous day, about 1 crore shares were traded.
Heritage Foods reported an impressive 83.6% year-on-year growth in its consolidated profit after tax for FY24, reaching Rs 106.50 crore. The company’s revenue increased by 17.1% YoY to Rs 3,793.9 crore. Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 51.5% to Rs 209.50 crore, with the margin improving by 125 basis points to 5.52% in FY24.
At approximately 10:40 am, shares of Heritage Foods came out of the upper circuit to trade at Rs 598, marking a 97% increase from the last close on the NSE. Over the past month, Heritage Foods shares have gained 47%, and 80% over the last three months.
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