Why is HFCL falling/rising?

As of 25-Jun, HFCL Ltd's stock price is currently at 87.23, reflecting an increase of 3.55 or 4.24%. The stock has shown a positive trend recently, gaining for the last four consecutive days and achieving a total return of 9.9% during this period. It has outperformed its sector by 3.33% today and reached an intraday high of Rs 87.58. However, despite these short-term gains, the stock has a concerning long-term performance, with a year-to-date decline of 22.77% and a one-year return of -24.15%. The company has reported negative results in the last two quarters, with a significant drop in net sales and operating profit, which raises concerns about its financial health. Additionally, a high percentage of promoter shares are pledged, which can exert downward pressure on the stock price in a declining market.
In the broader market context, HFCL's short-term return of 5.84% over the past week significantly outpaces the Sensex's return of 1.61% during the same period. However, the stock's long-term performance remains underwhelming compared to the benchmark, as it has underperformed the Sensex over one year and three years. The company's ability to service debt is relatively strong, but its declining operating profit and high levels of pledged shares contribute to a negative outlook. Overall, while HFCL has experienced a recent uptick in price, the underlying financial challenges and market conditions suggest a cautious approach for investors.