Why is LKP Finance falling/rising?

As of 04-Jul, LKP Finance Ltd is experiencing a price increase, currently at Rs 540.00, reflecting a rise of Rs 8.0 or 1.5%. The stock has shown a strong performance over the past month with a return of 14.41%, and it has outperformed the sector today by 1.37%. Despite a recent decline in investor participation, with delivery volume falling by 63.32% against the 5-day average, the stock has been gaining for the last two days, achieving a total return of 3.45% in that period. However, the company faces significant challenges, including operating losses and a weak long-term fundamental strength, as evidenced by a net sales decline of -10.18% annually and a negative profit after tax of Rs -20.44 crore in the latest quarter. Additionally, a reduction in promoter confidence, with a 35.37% decrease in their stake, raises concerns about the company's future prospects.
In the broader market context, LKP Finance's recent performance contrasts with the benchmark Sensex, which has seen a decline of 0.74% over the past week. While LKP Finance has outperformed the benchmark in the short term, its long-term fundamentals are weak, with a return of 242.86% over the past year despite a significant drop in profits. The stock's high valuation, trading at a premium compared to peers, coupled with the recent negative financial results, suggests that while the stock may be rising in the short term, underlying issues could pose risks for future performance.