Why is Loyal Textile falling/rising?

As of 11-Aug, Loyal Textile Mills Ltd is currently priced at 364.65, showing no change (0.00%). The stock has demonstrated a positive performance over the past week, with a return of +0.98%, and has outperformed the benchmark Sensex, which declined by -0.51%. Additionally, the stock has been trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bullish trend. However, despite these short-term gains, the company faces significant challenges, including operating losses and a high Debt to EBITDA ratio of 8.51 times, which suggests a weak long-term fundamental strength. The company has reported negative results for the last seven consecutive quarters, with net sales declining by -25.51% and a negative profit after tax of Rs -93.13 crore, contributing to a concerning outlook for investors.
In the broader market context, while Loyal Textile has shown a positive return of +13.00% over the past month, it has still underperformed the benchmark over the longer term, with a one-year return of -40.56% compared to the Sensex's +1.13%. This consistent underperformance against the benchmark over the last three years, combined with the company's negative EBITDA and declining profitability, paints a risky picture for potential investors. The rising investor participation, indicated by a significant increase in delivery volume, may suggest some short-term interest, but the overall financial health of the company remains a critical concern that could hinder sustained price increases.