Why is LKP Finance falling/rising?

As of 21-Jul, LKP Finance Ltd's stock price is currently at 536.00, reflecting an increase of 6.05 or 1.14%. The stock has been on a positive trajectory, gaining for the last three days with a total return of 2.44% during this period. Additionally, LKP Finance has outperformed its sector by 0.28% today and has shown impressive long-term performance, with a 213.45% return over the past year and a staggering 562.14% over the last three years. However, despite these gains, the company faces significant challenges, including operating losses and a decline in net sales, which have decreased at an annual rate of -10.18%. The recent reduction in promoter stake by -8.98% also raises concerns about confidence in the company's future.
In the broader market context, LKP Finance's short-term performance is slightly better than the benchmark, as it has remained flat over the past week while the Sensex has decreased by -0.06%. Despite the stock's strong historical returns, the overall market sentiment may be tempered by the company's weak long-term fundamentals and declining profitability, as indicated by a -100.6% drop in profits over the past year. This juxtaposition of strong short-term gains against a backdrop of fundamental weaknesses may contribute to a cautious outlook among investors.