Stocks based out of Andhra Pradesh, where the ruling TDP is a key ally in the Centre, saw heightened investor interest after Finance Minister Nirmala Sitharaman announced a Rs 15,000 crore state package in the first Budget of the Modi 3.0 government.Beyond the budget announcements, the bet was also that Andhra CM Chandra Babu Naidu, who is widely credited for turning Hyderabad into a tech hub, would do something similar to the capital city of Amravati. Some of the stocks like Heritage Foods and Amararaja Energy are also promoted by people connected to the TDP.While it would be too early to judge the performance of Naidu and development projects taken up by the state government, investors who bought into the euphoria last year for short term tailwinds around some of these companies are licking their wounds.Heritage Foods, Amararaja Energy, Aurobindo Pharma, Avanti Feeds, Sagar Cement, Godavari Drugs, Godrej Agrovet, Heritage Foods, KNR Construction, Likhita Infra, KCP and a few other names garnered a lot of traction post the election victory and post Budget last year.None of these stocks have even gained even in double-digits in the last six months with the highest return being just 4% by Godavari Drugs. Of these 11 stocks, as many as 9 are trading in the negative since the Budget. <iframe title="Andhra stocks poor show " aria-label="Table" id="datawrapper-chart-gOHVf" src="https://et-infographics.indiatimes.com/graphs/gOHVf/1/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="564" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}();</script>Chandra Babu Naidu has a strong reputation as a growth-oriented politician and the fact that he holds a significant bargaining power at the Centre to mobilise funds got the market excited.Heritage Foods, in which Naidu's son Nara Lokesh is a promoter, is down as much as 25%, while Amara Raja Energy, whose promoter is a former TDP MP, slumped 30%.Avanti Feeds, apart from Andhra related euphoria, also received an additional promise from Sitharaman around improving finances for shrimp farming and marketing. The stock, however, didn't live up to the expectations with a mere 1% return since then.One of the reasons for the poor show of Andhra stocks is due to the overall market sentiments, which have turned sour, especially in the last three months. The BSE midcap and smallcap indices, of which most of these stocks belong to, have fallen 8% and 6%, respectively, during this period.Analysts, who are emphatic about fundamentals finally catching up with the broader markets, whose valuations surged through the roof in the last few years, say there is still correction left before valuations reach comfortable levels.The long-term prospects of some of these stocks are, however, still intact. For instance, brokerage Nuvama has a buy rating on Amara Raja with a target price of Rs 1,580.(Data from Ritesh Presswala)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)