Why is Loyal Textile falling/rising?

As of 31-Jul, Loyal Textile Mills Ltd is experiencing a price increase, currently at Rs 357.20, reflecting a rise of Rs 17.0 or 5.0%. The stock opened with a gain of 5% today and has maintained this price level throughout the trading session, outperforming its sector by 7.35%. Over the past week, the stock has shown a modest increase of 1.13%, while over the last month, it has surged by 26.49%. However, despite this recent uptick, the company has faced significant challenges, including operating losses and a high Debt to EBITDA ratio of 8.51 times, which indicates a low ability to service its debt. The company has reported negative results for the last seven consecutive quarters, with a decline in profits and net sales, contributing to a concerning long-term fundamental strength.
In the broader market context, while Loyal Textile Mills has outperformed the Sensex in the short term, the benchmark index has declined by 1.22% over the past week. The textile sector overall has also faced a downturn, falling by 2.44%. Despite the stock's recent rise, it has consistently underperformed against the benchmark over the last three years, with a staggering 50.03% drop in returns over the past year. This underperformance, coupled with the company's negative EBITDA and declining profitability, suggests that while there may be short-term gains, the long-term outlook remains precarious.