Why is LKP Finance falling/rising?

As of 22-Jul, LKP Finance Ltd is currently priced at 530.00, reflecting a decrease of 6.0, or 1.12%. The stock has recently underperformed its sector by 0.91% and has experienced a trend reversal, falling after three consecutive days of gains. Despite this decline, the stock has shown strong performance over the longer term, with a remarkable 194.44% increase over the past year and a 550.31% rise over the last three years. However, the company is facing significant challenges, including operating losses and a weak long-term fundamental strength, as evidenced by a negative annual growth rate in net sales and substantial declines in profit before tax and profit after tax in the most recent quarter. Additionally, the promoters have reduced their stake in the company, which may indicate a lack of confidence in its future prospects.
In the broader market context, LKP Finance's short-term performance has been slightly worse than the benchmark, with a 1-week return of -0.56% compared to the Sensex's -0.47%. While the stock has outperformed the benchmark in the longer term, the recent negative financial results and declining promoter confidence may be contributing to its current price drop. The stock's liquidity remains adequate for trading, but the combination of poor financial performance and reduced stakeholder confidence could be influencing investor sentiment negatively.