Why is Liberty Shoes falling/rising?

As of 15-Sep, Liberty Shoes Ltd is experiencing a price increase, currently at Rs 353.45, reflecting a rise of Rs 14.4 or 4.25%. The stock has shown positive momentum, having outperformed its sector today and gained 5.95% over the last two days. It opened with a gain of 2.64% and reached an intraday high of Rs 355. The stock's performance over the past week and month has also been strong, with returns of +4.57% and +15.30%, respectively. However, despite these recent gains, the stock has a year-to-date decline of -26.50% and a one-year decline of -21.62%. The company's attractive valuation, indicated by a return on capital employed (ROCE) of 9.8 and trading at a discount to peers, contrasts with its negative profit trends, as profits have fallen by -15.7% over the past year.
In the broader market context, Liberty Shoes has significantly outperformed the benchmark Sensex in the short term, with a one-week return of +4.57% compared to the Sensex's +1.24%. This suggests that the stock's recent gains may be driven by specific investor interest rather than overall market trends. However, the company's long-term challenges, including a high debt-to-EBITDA ratio of 2.54 and low profitability reflected in a return on equity of 4.41%, raise concerns about its sustainability. Additionally, the lack of domestic mutual fund investment may indicate a lack of confidence in the stock's future performance, despite its recent price increase.