TDP-related stocks take centerstage after ‘Modi stocks’

livemint.com:

Indian stocks. If you remember, we wrote to you about ‘Modi stocks’ recently and their stellar show just before the election results. Now, with the elections done and dusted, two stocks related to the TDP have taken centerstage.

Shares of Heritage Foods and Amara Raja Energy have rallied almost 35% over the last two days following TDP's significant victory in local assembly election. The party has emerged as a key player in the formation of national government. Amara Raja's current MD Jay Dev Galla was a former MP from the party.

Heritage Foods’ promoter holding stands at 41.3% as of March 2024 and Nara Bhuvaneswari, wife of Chandrababu Naidu, is a key stakeholder in the company. She holds 24.37% stake. While the recent electoral success of the Telugu Desam Party has highlighted the political connections of certain companies, this article focuses on these entities' fundamental business attributes and market performance.

Any references to political affiliations are provided for contextual understanding only and should not be viewed as an endorsement of or commentary on political positions. Our analysis aims to objectively assess the financial health and prospects of the companies mentioned, independent of their political associations. So let’s look at both these stocks in detail.

#1 Amara Raja Energy & Mobility The flagship company of the Amara Raja group,Amara Raja Energy & Mobility, is one of the largest manufacturers of lead-acid batteries. It sells its leading brands, such as Amaron, PowerZone, Amaron Quanta, and Amaron Volt, for automotive and industrial uses. The company has seven manufacturing plants with a capacity to produce 19 m 4-wheeler batteries, 30 m 2-wheeler batteries, and 2.3 bn ah of industrial