Why is Latteys Industri falling/rising?

As of 03-Jul, Latteys Industries Ltd is experiencing a price increase, currently at 25.95, reflecting a rise of 1.23 or 4.98%. The stock has shown strong performance recently, outperforming its sector by 4.13% today and trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has surged by 21.83%, while its one-year return stands at an impressive 41.73%. Positive factors contributing to this upward movement include a higher profit after tax of Rs 1.43 Cr and record net sales of Rs 24.44 Cr for the quarter. However, concerns remain regarding the company's high Debt to EBITDA ratio of 2.69 times, indicating a low ability to service debt, which could temper investor enthusiasm.
In the broader market context, while Latteys Industries has outperformed the Sensex in the short term, with a 21.83% increase compared to the benchmark's decline of 0.56% over the past week, its year-to-date performance shows a decline of 19.18% against the Sensex's gain of 7.45%. This juxtaposition highlights the stock's volatility and potential concerns about long-term growth, as evidenced by a low average return on equity of 8.88% and a high PEG ratio of 6.3. Despite the recent positive momentum, the overall market conditions and the company's financial challenges suggest a cautious outlook moving forward.