Reliance Naval Hits Winning Streak
Anil Ambani's Reliance Group is in debt and the company's shares are down. Mr. Ambani has had a losing streak and his business has plunged into near bankruptcy. Part of the indebted Anil Ambani Group - Reliance Naval and Engineering Ltd., is enjoying a renaissance, at least in the stock market.
The stock has not declined for a single season since September 9 and has rallied from it's record-close low of 95 paise to Rs.7.31. It is up by 600 per cent in it's winning streak. The revival of the shipyard is very crucial for Anil Ambani, as the Modi Government is planning to spend billions of dollars on national security. According to brokers, the stock's advance is based more on speculation, rather than a change in the company's fortunes.
The outcome could be based on the moves by certain market operators with vested interests, as there are no changes in the fundamentals of the company. The Reliance Group under Anil Ambani is reeling from financial troubles.
Lenders led by IDBI Bank Ltd. have decided not to restructure the company's debt, and the bankruptcy tribunal is considering putting Reliance Naval in bankruptcy. The company shares are down by 50 per cent for the year even after the recent upsurge in the stock market ,for Reliance Naval