Why is Kakatiya Textile falling/rising?

As of 25-Jun, Kakatiya Textiles Ltd is experiencing a price increase, currently at 21.35, reflecting a rise of 0.55 or 2.64%. The stock has shown strong performance recently, with a 1-week return of 11.43% and a 1-month return of 15.97%, significantly outperforming the Sensex, which returned 1.61% and 1.27% respectively over the same periods. However, despite this short-term positive movement, the stock has a negative book value and a weak long-term fundamental strength, indicated by a poor annual growth rate in net sales of 6.85% and a high debt-to-equity ratio. The company reported very positive quarterly results with substantial growth in net sales and profits, which may have contributed to the recent price increase, but the overall long-term outlook remains concerning.
In the broader market context, Kakatiya Textiles has underperformed the market over the past year, with a return of -13.74% compared to the BSE 500's 3.43%. While the stock has shown impressive short-term gains, its long-term performance is overshadowed by its negative returns and high debt levels. The recent increase in price may be attributed to positive quarterly results and short-term trading activity, but the declining investor participation, as evidenced by a significant drop in delivery volume, suggests caution among investors. Overall, while the stock is rising in the short term, the long-term fundamentals present a challenging outlook.