Anil Ambani’s company Reliance Naval makes 600% gains

Anil Ambani’s company Reliance Naval makes 600% gains

Agency News

The penny stock hasn't declined for a single session since September 9 in a rally that has lifted it to Rs. 7.31 from its record-low close of 95 paise.

The sensex saw a new multibagger from the house of indebted Anil Ambani-led group.

The share price of Reliance Naval and Engineering Ltd., a baby of Anil Ambani group, has grown 600 percent in the last few months. As a sort of surprise in the market, the sharp jump in the share value of this penny stock from a mere 95 paise to Rs.7.31.

The share saw a secular growth since September 9. That's the longest winning streak since the company's trading debut in 2009.

The revival of the shipyard is crucial for Anil Ambani, who is betting on cash flows from government defense contracts as Prime Minister Narendra Modi plans to spend billions of dollars on national security. Brokers say the stock's parabolic advance is likely driven by speculators, rather than by a change in the company's fortunes.