Why is Coffee Day Enter falling/rising?

As of 25-Jun, Coffee Day Enterprises Ltd's stock price is currently at 37.61, reflecting an increase of 0.61, or 1.65%. The stock has been on an upward trend, gaining for the last four days and achieving a total return of 15.37% during this period. Despite this positive short-term performance, the stock has underperformed its sector by 0.96% today. Over the past week, Coffee Day has outperformed the Sensex, with a return of 11.93% compared to the benchmark's 1.61%. However, the company has faced significant challenges, including a negative return of -33.03% over the past year and a concerning decline in profits of -167.9%. The stock is trading at a discount compared to its peers, but it also has weak long-term fundamentals, including a poor ability to service its debt and negative results for the last three consecutive quarters.
In the broader market context, while Coffee Day has shown strong short-term returns, it has significantly lagged behind the overall market, which has generated a return of 3.43% over the past year. The lifestyle sector, in which Coffee Day operates, has gained by 2.62%, indicating some positive movement in the industry. However, the company's weak financial metrics, such as a negative EBIT to Interest ratio and a high percentage of pledged promoter shares, suggest that the stock may face additional downward pressure in a falling market. Overall, while the recent price increase may reflect short-term investor optimism, the underlying financial challenges could hinder sustained growth.