Why is KMG Milk Food falling/rising?

As of 09-Jul, KMG Milk Food Ltd's stock price is rising, currently at Rs. 48.25, reflecting an increase of 2.09 (4.53%). The stock has recently hit a new 52-week high of Rs. 48.46 and has outperformed its sector by 4.49% today. Over the past week, the stock has gained 4.53%, and it has shown strong performance over longer periods, with a year-to-date return of 42.37% and a one-year return of 45.90%. Positive factors contributing to this rise include increased promoter confidence, as they have raised their stake in the company by 0.95%, indicating a belief in the company's future. However, the stock faces challenges due to a negative book value and weak long-term fundamentals, including a significant decline in operating profit.
In the broader market context, KMG Milk Food's recent performance has significantly outpaced the benchmark Sensex, which has only increased by 0.15% over the past week. This strong relative performance highlights investor confidence in KMG Milk Food despite its underlying financial challenges. The stock's liquidity remains adequate for trading, although there has been a notable decline in delivery volume, suggesting some caution among investors. Overall, while the stock is experiencing upward momentum, the mixed signals regarding its long-term fundamentals and recent trading activity indicate a complex market sentiment.