Why is LKP Finance falling/rising?

As of 10-Jul, LKP Finance Ltd is currently priced at 540.00, with no change in price (0.00%). The stock has shown a strong performance over the past year, generating a return of 185.41%, significantly outperforming the BSE500 index. Despite this impressive return, the stock is currently 4.59% away from its 52-week high of Rs 564.8. However, there are concerns regarding falling investor participation, as the delivery volume has decreased by 46.17% compared to the 5-day average. Additionally, the company is facing operational challenges, including an operating loss and a decline in net sales growth, which has raised questions about its long-term fundamental strength.
In the broader market context, LKP Finance has outperformed the Sensex, which has only increased by 6.46% year-to-date, while LKP Finance has surged by 154.60%. However, the stock's recent performance is tempered by negative factors such as a significant drop in promoter confidence, with a 35.37% reduction in their stake, indicating potential concerns about the company's future. The stock's high valuation, trading at a premium compared to its peers, alongside poor financial results, including a PAT of Rs -20.44 crore, suggests that while the stock has performed well in the past, its future prospects may be uncertain, contributing to a cautious outlook among investors.