Why is LKP Finance falling/rising?

As of 08-Jul, LKP Finance Ltd is experiencing a decline in its stock price, currently at Rs 536.00, which reflects a decrease of Rs 7.7 or 1.42%. Today's price performance indicates that the stock has underperformed its sector by 1.37% and has reversed a trend of three consecutive days of gains. Although it opened with a gain of 3.18% and reached an intraday high of Rs 561, it also touched a low of Rs 531, suggesting volatility. Over the past week, the stock has shown a positive return of 1.32%, and it has significantly outperformed the benchmark Sensex over various periods, including a remarkable 217.16% return over the last year. However, the company faces challenges such as operating losses and a weak long-term fundamental strength, with net sales declining at an annual rate of -10.18%. Additionally, the promoters have reduced their stake by 35.37%, which may indicate 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 only increased by 0.02% over the past week. While the stock has demonstrated strong long-term returns, including a staggering 570.42% increase over three years, the current decline in price may be influenced by negative financial results, including a significant drop in profit after tax and cash reserves. The stock's high valuation, trading at a premium compared to peers, coupled with the recent decrease in promoter confidence, adds to the uncertainty surrounding its future performance.