Chandrababu Naidu family-run Heritage Foods shares jump 56%, promoters richer by Rs 870 crore

Naidu's son Nara Lokesh and wife Bhuvaneshwari Nara are the key promoters of Heritage Foods.
TDP chief and CM designate Nara Chandrababu Naidu and Party general secretary Nara Lokesh (seen eating cake) celebrate their party's win at their residence in Undavalli.
TDP chief and CM designate Nara Chandrababu Naidu and Party general secretary Nara Lokesh (seen eating cake) celebrate their party's win at their residence in Undavalli.Photo | Express

The re-emergence of Telugu Desam Party (TDP) supremo Chandrababu Naidu as a central figure in national politics and his party's landslide victory in Andhra Pradesh assembly elections has prompted investors to latch on to shares of Heritage Foods Limited, a company promoted by the members of Naidu family.

The stock has gained 56% this week, making members of his family, especially the two key stakeholders - Nara Lokesh and Bhuvaneshwari Nara - richer by around Rs 870 crores during the past five trading session period. 

The shares of Heritage Foods zoomed 10% on Friday to settle at Rs 661.75 a piece. The company’s market capitalisation stood at Rs Rs 6,140 crore. 

Nara Lokesh is Naidu's son.

According to data available on the BSE, Nara Lokesh held nearly 11% stake as on March 31, 2024, while Bhuvaneshwari Nara had a 24.37% stake in the company.

The entire promoter group held a 42.4% stake. This included a 6% holding via Megabid Finance and Investment Private Limited where the mother and the son are the two directors. 

TDP chief and CM designate Nara Chandrababu Naidu and Party general secretary Nara Lokesh (seen eating cake) celebrate their party's win at their residence in Undavalli.
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A senior equity market analyst said that the rally in share prices is entirely sentiment-driven as seen in the case of many other politically connected companies such as Sun TV and Amar Raja Energy.

"All these companies will have to improve their earning numbers and escape any allegation related to favouritism/corruption to justify the share price rise," he said while requesting anonymity. 

The Heritage Group, founded in 1992, by Chandrababu Naidu, has three business divisions - dairy, retail and agri - under its flagship company Heritage Foods.

At present, Heritage's milk and milk products have a market presence in Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand and Uttar Pradesh

TDP chief and CM designate Nara Chandrababu Naidu and Party general secretary Nara Lokesh (seen eating cake) celebrate their party's win at their residence in Undavalli.
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