Why is Karnavati Financ falling/rising?

As of 13-Jun, Karnavati Finance Ltd's stock price is currently at 2.20, reflecting an increase of 0.13 or 6.28%. The stock has shown strong performance recently, with a consecutive gain over the last five days, resulting in an 11.68% return during this period. Additionally, the stock has outperformed its sector by 8%. However, despite these short-term gains, the company faces significant challenges, including operating losses and a high Debt to EBITDA ratio of 6.94 times, which indicates a low ability to service its debt. The company has also reported low profitability, with an average Return on Equity of only 1.67%. These negative factors contribute to a risky investment profile, as the stock has generated a return of -17.29% over the past year, indicating a concerning trend in its long-term performance.
In the broader market context, Karnavati Finance's short-term return of +11.68% over the past week stands in stark contrast to the Sensex, which has declined by 1.30% during the same period. This suggests that the stock is gaining traction among investors despite the overall market downturn. However, the company's long-term performance remains below par, having underperformed the BSE 500 over the last three years, one year, and three months. While the recent price movement may attract some investor interest, the underlying financial weaknesses and historical performance issues highlight the risks associated with investing in Karnavati Finance Ltd.