On Monday, Heritage Foods shares hit a fresh 52-week high of Rs 727.9 on the BSE, locking in a 10% upper circuit. Just over two weeks ago, on May 23, the stock closed at Rs 354.5. Notably, from June 3 (a day before election results) to June 10, the share price has seen an unbeaten rally.
Chief Minister-designate Chandrababu Naidu‘s family’s total holding in the company stands at 35.71%, translating into 3,31,36,005 shares.
Naidu’s son Nara Lokesh is a promoter of Heritage Foods with nearly 10.82% stake as of March 31, 2024, according to the shareholding data available on the BSE. The other promoters include Bhuvaneshwari Nara and Devaansh Nara, who hold 24.37% and 0.06% stake, respectively, in the company. While the former is the wife of Chandrababu Naidu, the latter is their grandchild. Nara Brahmani who holds a 0.46% stake in Heritage Foods is the daughter-in-law.
As of June 10, 2024, Bhuvaneshwari Nara’s wealth stands at Rs 1631.6 crore, while Nara Lokesh’s wealth amounts to Rs 724.4 crore. The cumulative wealth of the family from Heritage Foods now totals Rs 2,391 crore.The stock has been on an upward trend on Naidu’s sweeping win in the assembly elections. Naidu’s Telugu Desam Party (TDP) in alliance with the Bharatiya Janata Party (BJP) and Pawan Kalyan’s Jana Sena Party (JSP) clinched 165 out of 175 seats in the Andhra Pradesh assembly election, defeating YSRCP‘s Jagan Mohan Reddy.Meanwhile, Heritage Foods is one of India’s leading value-added and branded dairy products companies. It has a presence in the cattle feed business through its subsidiary, Heritage Nutrivet Limited (HNL). Heritage Foods’ milk and milk products, such as curd, ghee, paneer, flavoured milk, among others, are consumed by more than 1.5 million households in 11 states across India.The company clocked a growth of 17% and 83% in revenues and profit in the fiscal year 2023-24, respectively. Backed by the strong financial show, the stock jumped as much as 126% this year.
However, the recent surge in the stock has pushed it into a strongly overbought zone, with the day’s Relative Strength Index (RSI) and Money Flow Index (MFI) hovering above 94.4, well above the threshold of 70 considered as overbought territory. Moreover, the stock is currently trading above its 20-day, 50-day, and 200-day moving averages, indicating a bullish sentiment in the market.
(Disclaimer: The views expressed by experts are their own and do not necessarily reflect those of The Economic Times)
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