Heritage Foods shares dip 5% amid profit booking spree, down for 3rd day in a row
Heritage Foods fell another 5% in today's trade to ₹627.30 apiece, extending their downward trend for the third consecutive session as investors engaged in profit booking. The company's shares made headlines recently due to their stellar performance, soaring 70% in just seven sessions between June 4 and June 10.
This dramatic rise was closely linked to the political landscape, as optimism surged following the Telugu Desam Party (TDP) securing a significant majority in the 2024 Andhra Pradesh assembly elections.Also Read: Heritage Foods shares double shareholders' money in one monthThe stock's bull run began immediately after exit polls projected the return of N. Chandrababu Naidu, the founder of Heritage Foods, as Chief Minister of Andhra Pradesh.
The TDP's alliance with Pawan Kalyan and the BJP resulted in a record 164 seats, leaving the ruling YSRCP with just 11 seats out of the 175 total in the state assembly. Consequently, the YS Jagan-led party even lost the status of opposition in the assembly, as a party needs at least 18 seats to attain this status.Also Read: TDP-related stocks take centerstage after ‘Modi stocks’This landslide victory not only propelled the stock but also bolstered the family's fortunes significantly.
The TDP, led by Naidu, has also been instrumental in the formation of the central government, holding the second-highest number of MP seats in the NDA after the BJP.Despite Chandrababu Naidu not directly owning a stake in Heritage Foods, the strong connection between his political success and the company's performance has been evident in the market's reaction.Naidu family members, including Bhuvaneswari Nara (wife), Nara Lokesh (son), N. Brahmani (daughter-in-law), and Devaansh Nara (grandson),
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