Why is LKP Finance falling/rising?

As of 09-Jul, LKP Finance Ltd's stock price is currently at Rs 540.00, reflecting an increase of Rs 4.0 or 0.75%. The stock has shown strong performance recently, with a 1-week return of 3.45% and a 1-month return of 8.00%. It is also close to its 52-week high, being only 4.59% away from Rs 564.8. Despite this positive movement, there are significant concerns regarding the company's fundamentals, including operating losses and a decline in net sales 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 prospects.
Broader market context shows that LKP Finance has outperformed the Sensex, which only gained 0.15% over the past week. The stock's long-term performance is impressive, with a year-to-date return of 154.60% and a 3-year return of 575.42%. However, the company is facing challenges such as a negative profit after tax and low cash reserves, which could impact investor sentiment. While the stock has been liquid enough for trading, the recent drop in delivery volume by 32.83% suggests a potential decrease in investor participation, which could further influence its price movement in the future.