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KCP shares surged more than 18% to hit a 52-week high of Rs 238.70 on BSE in morning deals. The stock had hit the upper circuit of 20% at Rs 202.55 per share on Wednesday.
Shares of cement and sugar manufacturer KCP Ltd rallied more than 18 per cent to hit a 52-week high on Thursday following the return of the Telugu Desam Party (TDP)-led alliance to power in Andhra Pradesh.
KCP Ltd has a significant presence in Andhra Pradesh. The company has a cement plant near Amaravati which is one of the three capitals on Andhra Pradesh. Visakhapatnam is the administrative capital of the state, Kurnool is judicial capital and Amaravati is legislative capital.
The TDP promised to reinstate Amaravati as the capital city. The incumbent government had shelved plans of development of Amaravati as capital.
KCP Ltd is primarily into cement manufacturing and sugar production which account for around 96 per cent of its total revenues. Chennai-based KCP Ltd has a total cement production capacity of 4.3 million tonnes per annum. It has a cement plant strategically located near Amaravati.
Meanwhile, shares of Heritage Foods Ltd, which is linked with TDP chief N Chandrababu Naidu, hit the upper circuit of 10 per cent at Rs 601.60 on BSE following the party’s resounding win in the state assembly polls.
Heritage Foods Ltd shares hit an upper circuit on Wednesday as well and traded at year-high levels, taking the overall gains to 37 per cent since the announcement of poll results on June 4.
Meanwhile, Chandrababu Naidu-linked Heritage Foods shares also raced 10 per cent to hit the upper circuit at Rs 601.60 which is also its 52-week high level.
Naidu founded Heritage Foods in 1992. The company is into dairy products production and renewable energy segment. Heritage’s milk and milk products are sold in Andhra Pradesh, Telangana, Kerala, Tamil Nadu, Karnataka, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand & Uttar Pradesh.
Heritage Foods shares are trading 8.77 per cent higher at ₹594.90 on BSE at 10:10 AM.
The TDP-BJP-JSP alliance won 165 out of 175 seats in the Andhra Pradesh assembly election.
