Why is HFCL falling/rising?

As of 12-Sep, HFCL Ltd's stock price is currently at Rs 72.95, reflecting an increase of Rs 2.66, or 3.78%. The stock has outperformed its sector today by 1.79%, reaching an intraday high of Rs 73.66, which is a 4.79% increase. Over the past week, HFCL has shown a return of +4.45%, although it has significantly underperformed over the longer term, with a year-to-date decline of -35.41% and a one-year return of -51.50%. The company has a low Debt to EBITDA ratio of 1.04, indicating a strong ability to service its debt, but it has also reported a dramatic fall in profits by -90.9% over the past year, contributing to negative sentiment around the stock.
In the broader market context, HFCL's short-term performance of +4.45% over the past week is notably better than the Sensex, which has only increased by +1.48% in the same period. However, the stock's long-term performance remains concerning, as it has underperformed the benchmark indices over various time frames, including a -51.50% return in the last year compared to a -1.28% decline in the Sensex. The company has also faced challenges such as a significant drop in net sales and negative results for three consecutive quarters, alongside a high percentage of pledged promoter shares, which can exert additional downward pressure on the stock price in a falling market.