Why is Loyal Textile falling/rising?

As of 10-Jul, Loyal Textile Mills Ltd is experiencing a price increase, currently at 325.35, reflecting a rise of 15.45 or 4.99%. The stock has shown strong performance today, outperforming its sector by 5.29%. Additionally, it has demonstrated positive momentum over the past week with a return of +13.15%, although it remains lower than the benchmark Sensex, which has seen a slight decline of -0.20%. Despite this short-term gain, the company faces significant challenges, including operating losses and a high Debt to EBITDA ratio of 8.51 times, which indicates a weak long-term fundamental strength. The company has reported negative results for the last seven consecutive quarters, with net sales and profit after tax both declining by -25.51%.
In the broader market context, while Loyal Textile has outperformed the sector recently, it has underperformed the market over the past year, generating a return of -45.29% compared to the Sensex's gain of +4.24%. This stark contrast highlights the stock's struggles despite recent positive movements. The company's weak profitability, as indicated by a low average return on equity of 7.96%, and the significant drop in profits over the past year further contribute to its risky profile. Overall, while there are short-term gains, the long-term outlook remains concerning due to the company's financial difficulties.