Why is Cosmo Ferrites falling/rising?

As of 16-Jul, Cosmo Ferrites Ltd's stock price is rising, currently at 293.80, reflecting an increase of 20.9 or 7.66%. The stock has outperformed its sector today, gaining 10.35% over the last two days and opening with a gain of 4.07%. It reached an intraday high of Rs 299, indicating strong momentum. Despite this positive short-term performance, the company faces significant challenges, including operating losses and a high Debt to EBITDA ratio, which raises concerns about its long-term viability. The stock has generated a substantial return of 57.20% over the past year, but this is juxtaposed with a drastic decline in profits, highlighting a risky investment profile.
In the broader market context, Cosmo Ferrites has outperformed the Sensex in the short term, with a 1-week return of +10.45% compared to the benchmark's -1.08%. However, over the longer term, the stock has underperformed relative to the Sensex, with a year-to-date return of -11.65% against the benchmark's +5.75%. This divergence suggests that while the stock is experiencing a temporary surge, its long-term fundamentals remain weak, which could impact investor sentiment moving forward.