Why is LKP Finance falling/rising?

As of 03-Jul, LKP Finance Ltd's stock price is currently at Rs 532.00, reflecting an increase of Rs 10.0 or 1.92%. The stock has shown a positive trend today, having gained after three consecutive days of decline, and opened with a notable gain of 4.21%. It reached an intraday high of Rs 549.5, which is a 5.27% increase. Over the past week, the stock has outperformed the sector by 2.44%, and its performance over the last month has been impressive, with a return of 12.00%. However, despite these short-term gains, the company faces significant challenges, including operating losses and a decline in net sales, which have fallen at an annual rate of -10.18%. Additionally, the promoters have reduced their stake by 35.37%, indicating a lack of confidence in the company's future.
In the broader market context, LKP Finance's recent performance contrasts with the Sensex, which has declined by 0.62% over the past week. While the stock has generated a remarkable return of 254.67% over the past year, its profits have decreased by 100.6%, raising concerns about its long-term viability. The stock's valuation is considered expensive compared to its peers, and the falling investor participation, evidenced by a 90.79% drop in delivery volume, suggests a potential lack of interest from investors. Overall, while the stock has shown resilience in the short term, the underlying financial weaknesses and reduced promoter confidence may pose risks for future performance.