Heritage foods stocks surge profit booking trend
This marks the third consecutive day of decline as investors opted to book profits.
image for illustrative purpose
Heritage Foods experienced a notable setback in today's trading session, with its shares declining by 5% to ₹627.30 a piece. This marks the third consecutive day of decline as investors opted to book profits.
Just recently, the company's shares had attracted attention for their impressive surge, rising by 70% in just seven sessions from June 4 to June 10.
The sudden upward movement was closely tied to the political landscape, particularly the optimism surrounding the Telugu Desam Party's (TDP) significant victory in the 2024 Andhra Pradesh assembly elections.
The stock's growth began following exit polls suggesting the return of N. Chandrababu Naidu, the founder of Heritage Foods, as Chief Minister of Andhra Pradesh.
This landslide victory not only boosted the stock but also substantially enhanced the fortunes of the Naidu family.
The TDP, under Naidu's leadership, also played a crucial role in the formation of the central government, securing the second-highest number of MP seats in the NDA after the BJP.
Although Chandrababu Naidu does not hold a direct stake in Heritage Foods, the market has unmistakably linked his political success to the company's performance.
Today, June 12, marks his swearing-in ceremony as Chief Minister of Andhra Pradesh, along with 24 ministers in his cabinet. The event is scheduled for 11:27 a.m. at Kesarapalli IT Park near Gannavaram airport in Krishna district.
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