Why is LKP Finance falling/rising?

As of 18-Jul, LKP Finance Ltd's stock price is currently at 529.95, reflecting an increase of 4.95 (0.94%). The stock has shown a positive trend recently, gaining for the last two days with a total return of 1.28%. However, it opened the day with a loss of 2.48%, reaching an intraday low of Rs 512. Despite this, the stock has outperformed the sector by 1.23% today. Over the past month, LKP Finance has delivered a return of 7.72%, significantly outperforming the Sensex, which only gained 0.38%. While the stock has impressive long-term returns, including a 199.24% increase over the past year, it faces challenges such as operating losses and declining promoter confidence, with promoters reducing their stake by 8.98%.
In the broader market context, LKP Finance's short-term performance contrasts with the benchmark, as it has outperformed the Sensex over the past week, which declined by 0.90%. However, the stock's recent gains are tempered by concerns regarding its long-term fundamentals, including negative net sales growth and a significant drop in profits. The company's weak financial health, indicated by a negative return on equity and low cash reserves, raises questions about its sustainability despite its strong historical performance. Thus, while the stock is currently rising, underlying issues may pose risks for future performance.