Why is K G Denim falling/rising?

As of 16-Sep, K G Denim Ltd's stock price is currently at 22.18, reflecting an increase of 0.58 or 2.69%. The stock has shown a positive performance today, outperforming its sector by 1.24% and has gained consecutively over the last two days, resulting in a total return of 5.07% during this period. However, despite this recent uptick, the stock has underperformed in the longer term, with a decline of 2.29% over the past week and a significant drop of 44.69% over the last three years. The company faces serious challenges, including a negative book value, high debt levels with a debt-to-equity ratio of 2.77, and a history of negative results over the last 12 quarters, which contribute to its weak long-term fundamental strength.
In the broader market context, while K G Denim's recent short-term gains are notable, they come against a backdrop of consistent underperformance compared to the benchmark, with the Sensex rising by 1.58% in the past week. The stock's year-to-date performance is also concerning, showing a decline of 10.92% compared to a 5.43% increase in the benchmark. This disparity highlights the challenges K G Denim faces in regaining investor confidence, particularly given its poor long-term growth metrics and declining net sales. The stock's liquidity remains adequate for trading, but the falling investor participation, as indicated by a significant drop in delivery volume, suggests caution among investors.