This Anil Ambani-owned penny stock has delivered a whopping 660% return in 3 months

Let's compare this to other Reliance Group companies. Only Reliance Power and Reliance Communications have managed to eke out gains in this period at 9 percent and 13 percent respectively.

Meanwhile, Reliance Infrastructure and Reliance Capital have fallen approximately 30 percent and 50 percent during the same period.

Reliance Naval's stock has done well after Prime Minister Narendra Modi made it clear that national security was of paramount importance which has resulted in hopes of receiving potential government defense contracts.

It's noteworthy that the Indian government has invited bids for warships worth $2.2 billion and support vessels. This is part of an overall $250 billion military modernisation plan.

However, the current situation of the company is extremely dire due to its cash crunch issues. The company had a debt pile of Rs 64.6 billion as of March 31 and its lenders include IDBI Bank, Union Bank of India and Central Bank of India. Even after the non-stop rally, the stock is still down 50 percent this year.