Multibagger stock: The market performance of Heritage Foods shares, a family-run business led by TDP leader Nara Chandrababu Naidu's family, has been nothing short of extraordinary. In the past six sessions alone, Heritage Foods share price has consistently hit the 10 percent upper circuit, propelling the FMCG stock to new heights. This upward trajectory, spanning a month, has catapulted the stock into the league of top market performers. The share price has skyrocketed from ₹346 to ₹727.35 apiece on NSE, marking an astounding 100 percent increase.
The Indian stock market experts have identified Heritage Foods shares as a standout in the FMCG sector, which is expected to outperform other segments. Their expertise and insights into the market's bullish outlook on FMCG stocks, driven by a better-than-expected monsoon forecast, is a key factor in this. The fact that the company is led by TDP leader Chandrababu Naidu's family and the anticipated increase in consumption of FMCG products are also contributing to the stock's rise.
The surge in Heritage Foods shares can be attributed to a confluence of factors. Avinash Gorakshkar, Head of Research at Profitmart Securities, identifies the better-than-expected monsoon forecast as a pivotal driver. In the market's perception, FMCG and consumer durable stocks tend to thrive under such circumstances. Heritage Foods shares are reaping the rewards of this forecast, with the company poised to deliver robust quarterly figures due to increased consumption of its products.
Avinash Gorakshkar said that the recent rally in the multi-bagger stock could be attributed to the rising political might of the company's promoter family after Modi 3.0 was given a mandate by the Indian electorates to run the nation for the next five years. However, he emphasized that the political might has no connection with the company's fundamentals and advised investors to make any investment decision based on the company's balance sheet, underlining the importance of thorough analysis.
When asked about the future of Heritage Foods shares, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, advised, "Given the substantial rise in recent sessions, I recommend Heritage Foods shareholders to secure 50 per cent profit, considering the stock's over 100 per cent rally in one month, and retain the rest, maintaining a stop loss at ₹610 apiece."
The Anand Rathi expert advised new investors to avoid taking a new position in this Chandrababu Naidu-run FMCG company's stock.
As per the shareholding pattern of Heritage Foods Ltd for January to March 2024, Nara Chandrababu Naidu's wife, Nara Bhuvneshwari, owns 2,26,11,525 company shares, which is 24.37 per cent of the total paid-up capital of the company. Chandrababu Naidu Nara Lokesh owns 1,00,37,453 company shares, which is 10.82 per cent of the company's total paid-up capital.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
