Why is Lakhotia Poly. falling/rising?

As of 17-Oct, Lakhotia Polyesters (India) Ltd is experiencing a decline in its stock price, currently at Rs 151.75, which represents a decrease of 7.95 (-4.98%). The stock has underperformed its sector by 4% today and has been on a consecutive downward trend for the last three days, resulting in a total drop of 14.22% during this period. Despite impressive long-term performance, with a 1-year return of 352.99% and significant growth in net sales and profit after tax, the stock's recent movement is negatively impacted by weak long-term fundamentals, including a high debt-to-EBITDA ratio and a negative EBITDA, which raises concerns about its sustainability and profitability.
In the broader market context, the stock's short-term performance contrasts sharply with the benchmark, as it has declined by 5.45% over the past week while the Sensex has increased by 1.76%. This underperformance highlights investor concerns regarding the company's ability to maintain its previous growth trajectory amidst declining investor participation and liquidity issues. Although the stock has shown remarkable growth over the past year and has consistently reported positive results, the current market sentiment appears to be cautious, reflecting the risks associated with its financial health and operational efficiency.