Why is Lakhotia Poly. falling/rising?

As of 04-Sep, Lakhotia Polyesters (India) Ltd is experiencing a price increase, with the current price at Rs 52.68, reflecting a rise of Rs 2.64 or 5.28%. The stock has recently hit a new 52-week high of Rs 52.93 and has been on a consecutive gain streak for the last eight days, accumulating a remarkable 44.25% return during this period. The company has shown strong financial performance, with net sales growing by 134.03% and profit after tax soaring by 1,337.50% over the last six months. However, it is important to note that the company has reported negative operating profits over the last five years, leading to concerns about its long-term fundamental strength.
In the broader market context, Lakhotia Polyesters has significantly outperformed the benchmark, with a one-week return of +34.87% compared to the Sensex's +0.80%. This trend is indicative of strong investor interest, as evidenced by a substantial increase in delivery volume, which rose by 950.48% against the five-day average. Despite the stock's impressive short-term performance, it faces risks due to its high debt-to-EBITDA ratio and negative EBITDA, which could impact its long-term viability. Overall, while the stock is currently rising, investors should remain cautious due to the underlying financial challenges.