Why is KMF Builders falling/rising?

As of 08-Jul, KMF Builders & Developers Ltd is experiencing a price increase, currently at Rs 10.65, reflecting a rise of 1.21 or 12.82%. Today, the stock opened with a significant gain of 12.71% and reached an intraday high of Rs 10.65. It has outperformed its sector by 11.71% today, although it has shown high volatility with an intraday fluctuation of 6.93%. Over the past month, the stock has delivered a return of 3.90%, which is notably higher than the benchmark Sensex's return of 1.85%. However, despite the positive short-term performance, the company faces challenges such as a weak long-term fundamental strength indicated by a -207.11% CAGR growth in operating profits over the last five years and a negative EBITDA, which could impact investor sentiment.
In the broader market context, KMF Builders has generated a return of 25.15% over the past year, significantly outperforming the BSE500's return of 1.98%. This strong performance, however, is juxtaposed with concerns regarding the company's ability to service its debt, as evidenced by a poor EBIT to Interest ratio of -0.21. While the stock's recent gains may attract attention, the underlying financial weaknesses and falling investor participation, with a 34.07% decline in delivery volume, suggest caution among investors. Overall, while the stock is rising in the short term, its long-term outlook remains uncertain due to fundamental weaknesses.