Why is Lexus Granito falling/rising?

As of 23-Oct, Lexus Granito (India) Ltd is experiencing a price increase, currently at 34.16, reflecting a rise of 0.94 or 2.83%. The stock has shown strong performance recently, outperforming its sector by 2.27% 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 30.83%, significantly outpacing the Sensex, which only increased by 1.20%. Despite a year-to-date decline of 19.01%, the company has reported positive results in its latest financials, including a higher profit after tax and earnings per share, which may be contributing to the recent upward movement. However, the company also faces challenges, such as a high debt-to-equity ratio and reported losses, indicating a weak long-term fundamental strength.
In the broader market context, while Lexus Granito has shown impressive short-term returns, its performance over the last year has been disappointing, with a return of -18.16% compared to the Sensex's gain of 9.50%. This consistent underperformance against the benchmark over the past three years highlights the stock's volatility and potential risks. Despite the recent positive momentum, the high debt levels and negative return on capital employed suggest that investors should remain cautious. The stock's current rise may be driven by short-term trading activity and improved investor participation, but the underlying financial challenges could limit its long-term sustainability.