Why is KIOCL falling/rising?

As of 21-Aug, KIOCL Ltd's stock price is rising, currently at 445.05, reflecting an increase of 43.0 or 10.7%. The stock has recently hit a new 52-week high of Rs. 482.45 and has shown strong performance, gaining 35.27% over the past week and 44.50% over the past month, significantly outperforming the Sensex, which has seen a slight decline of 0.24% in the same timeframe. Despite the positive short-term performance, the company faces challenges, including operating losses and a weak ability to service its debt, which may affect long-term investor confidence. The stock has also declared negative results for the last six consecutive quarters, with net sales falling by 38.29% and a negative EBITDA, indicating a risky investment despite its recent gains.
Broader market context shows that KIOCL's short-term returns have significantly outperformed the benchmark, with a 1-week return of 35.27% compared to the Sensex's 1.74%. This strong performance in the short term contrasts with the company's long-term fundamentals, which are weak, as indicated by its low return on equity and the minimal stake held by domestic mutual funds. While the stock's recent volatility and rising investor participation suggest a positive sentiment, the underlying financial challenges may temper enthusiasm among long-term investors, highlighting a divergence between short-term price movements and long-term viability.