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 September 9 in a rally that has lifted it to Rs. 7.31 from its record-low close of 95 paise. 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.

"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, the 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.