Business new tamfitronics
HYDERABAD: Market indices may have closed B-Day in the red, but stocks of several Andhra Pradesh-based companies as well as those linked with AP chief minister Nara Chandrababu Naidu rallied on the bourses after a slew of sops were announced for the state.
Heritage Foods
for instance – a dairy products company promoted by Naidu’s family – hit the 5% upper circuit on Tuesday before closing at Rs 575.
The company’s market capitalisation stands at Rs 5,333 crore, up 35% from Rs 3,957 crore on June 3 – the day before Lok Sabha results were announced. The paneer player’s market fortunes have seen a sharp revival since June 4, when Naidu emerged as one of the two kingmakers, along with JD(U)’s Nitish Kumar, in the coalition govt led by PM Modi.
Tirupati-based Amara Raja Energy & Mobility also ended the day in the green. It is promoted by former Telugu Desam Party Lok Sabha MP Jayadev Galla, and is the state’s largest company by market capitalisation. The company’s stock closed 1.1% up at Rs 1,548, with the market cap at Rs 28,326 crore. Last year on Budget day, the scrip had closed at Rs 594 and at a market cap of Rs 10,140 crore.
Guntur-based CCL Products too closed with gains. It gained 1.7% to close at Rs 602. Other AP-based companies also closed higher, including Avanti Feeds (up 4.6%), Avantel (0.9%), Andhra Sugars (1.5%), Nelcast (0.2%), Apex Frozen Foods (3.1%) and NILE (2.4%). However, Visakhapatnam-registered pharma player Laurus Labs – AP’s third-largest company by market cap – was an exception. The stock ended the day in the red, down 2.7% at Rs 430.