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    Anil Ambani stock a multibagger! Scrip zooms 600% in a dream run since Sept 9

    Synopsis

    That’s the longest winning streak since the company’s trading debut in 2009.

    Brokers say the stock’s parabolic advance is likely driven by speculators, rather than by a change in the company’s fortunes.
    By Ronojoy Mazumdar and P R Sanjai

    Reliance Naval and Engineering Ltd., part of the indebted Anil Ambani-led group, is enjoying a renaissance -- at least on India’s stock market.

    The penny stock hasn’t declined for a single session since Sept. 9 in a rally that has lifted it to 7.31 rupees from its record-low close of 95 paise. That’s the longest winning streak since the company’s trading debut in 2009.

    record runBloomberg

    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.

    “This could be a purely speculative move by certain market operators with a vested interest as there is no change in fundamentals of the company, which is reeling under various troubles,” said Arun Kejriwal, director at KRIS, an investment advisory firm in Mumbai. “It is quite easy to create such triggers on shares as prices are too low.”

    The company didn’t immediately respond to calls and emails seeking comment.

    Meanwhile, India’s bankruptcy tribunal is considering putting Reliance Naval in bankruptcy as lenders led by IDBI Bank Ltd. have decided not to restructure the company’s debt. Even after the recent gains, the company’s shares are down 50 per cent for the year.
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    18 Comments on this Story

    Escobar 137 days ago
    i have 1000 shares @Rs 1 per share. Its a gamle but can be a game changer if adani takes it over
    MD. FAZALULLAH KHAN213 days ago
    Corona -19 has infected Reliance Power share,it has gone down from Rs.356.00 to Rs.1.50 all the investor of this company are bleeding. What Mr.Anil Ambani is doing. This is the right for him to buy back .What are you doing to bring back the confidence of the Public ??????????????????
    rakesh kumar294 days ago
    One those who looted the public money God never foregive him.
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