Why is Atlas Cycles falling/rising?

As of 02-Jul, Atlas Cycles (Haryana) Ltd is experiencing a price increase, currently at Rs 142.60, reflecting a rise of 6.75 or 4.97%. The stock has shown strong performance today, outperforming its sector by 5.03% and achieving a consecutive gain over the last three days with a total return of 11.45%. It opened with a gain of 4.97% and has maintained this price level throughout the trading session. In terms of returns, the stock has performed well in the short term, with a 1-week increase of 13.54%, although it has seen a decline of 6.55% over the past month. Despite these short-term gains, the company faces significant challenges, including operating losses and weak long-term fundamental strength, as indicated by a poor EBIT to Interest ratio of -12.36 and a low Return on Equity of 2.35%.
In the broader market context, the Sensex has increased by 0.79% over the past week, indicating that Atlas Cycles has significantly outperformed the benchmark during this period. However, the stock's year-to-date return of 95.61% contrasts with a more modest 6.75% gain for the Sensex, highlighting its strong performance relative to the market. Despite the positive short-term price movements, the company's financial health raises concerns, particularly with its negative EBITDA and reliance on non-operating income, which constitutes a significant portion of its profit before tax. This combination of strong short-term gains against a backdrop of fundamental weaknesses suggests that while the stock is rising currently, its long-term sustainability may be in question.