Why is LKP Finance falling/rising?

As of 14-Jul, LKP Finance Ltd's stock price is currently at Rs 536.00, reflecting an increase of Rs 2.0 or 0.37%. The stock opened with a gain of 2.81% today and reached an intraday high of Rs 549. Despite a recent decline of 1.42% over the past week, it has shown strong performance over the past month with a return of 14.04%, and an impressive year-to-date increase of 152.71%. However, the company faces challenges, including operating losses and a decline in net sales, which has grown at an annual rate of -10.18%. Additionally, the promoters have reduced their stake by 35.37%, indicating a potential lack of confidence in the company's future.
Broader market context shows that while LKP Finance has outperformed the benchmark Sensex in the long term, its recent short-term performance mirrors that of the index, both declining by 1.42% over the past week. The stock's liquidity remains adequate for trading, but the negative financial indicators, such as a significant drop in profit after tax and low cash reserves, may weigh on investor sentiment. Despite the stock's strong historical returns, the combination of weak fundamentals and decreasing promoter confidence could lead to cautious trading behavior among investors.