Ever since Telugu Desam Party led by N Chandrababu Naidu faced a humiliating defeat in the assembly elections in Andhra Pradesh, his family business enterprise Heritage Foods has been showing a downward trend in the stock market.
On Monday, the stock price of Heritage Foods was around Rs 350, which is nearly 60 per cent less compared to the same period last year, when Naidu was in power. Since May 23, when the TDP lost power to YSR Congress party, the fall is nearly 30 per cent.
This fall is despite the fact that the market is buoyant with regard to other scrips. In the last 52 weeks as per Sensex, the highest price registered by the stocks of Heritage Foods was Rs 569 and its lowest was Rs 288. In June 2018, its market price was Rs 720.
The Heritage Foods, presently being run by Naidu’s daughter-in-law Nara Brahmani, has been engaged in dairy business that includes procurement of milk from dairy farmers at village level, and distribution of processed milk to the households in 15 states.
Brahmani, in fact, was planning to register a revenue growth run-rate of 15-20 per cent over the next five years by territorial expansion in milk-rich regions and areas where consumption of milk is high, penetrate deeper in existing regions, and increase the value-added products portfolio. But the growth is not in tune with the expectations.