Why is Latteys Industri falling/rising?

As of 02-Jul, Latteys Industries Ltd is experiencing a price increase, currently at 24.72, reflecting a rise of 1.17 or 4.97%. The stock has shown strong performance today, outperforming its sector by 6.57%. Additionally, it is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has gained 14.39%, significantly outpacing the Sensex, which only increased by 0.83%. Positive factors contributing to this rise include a higher profit after tax of Rs 1.43 Cr and record net sales of Rs 24.44 Cr for the quarter. However, the stock faces challenges, such as a high Debt to EBITDA ratio of 2.69 times, indicating a low ability to service debt, and a relatively low return on equity of 8.88%, suggesting limited profitability.
In the broader market context, Latteys Industries has outperformed the benchmark in both the short-term and long-term, generating a 41.74% return over the past year compared to the Sensex's 5.51%. Despite this strong performance, the company's long-term growth prospects appear weak, with an annual operating profit growth rate of only 18.93% over the last five years. The stock's valuation is considered expensive, with a PEG ratio of 6, which may raise concerns among investors. Overall, while the stock is currently rising due to positive short-term performance and strong quarterly results, underlying financial challenges could impact its future trajectory.