Why is Lykis falling/rising?

As of 31-Jul, Lykis Ltd's stock price is currently at Rs 38.55, reflecting an increase of Rs 1.45 or 3.91%. The stock has shown a positive trend recently, gaining for the last two days with a total return of 5.62% during this period. Despite opening lower today with a loss of 2.43%, it reached an intraday high of Rs 38.9, indicating some recovery. However, the stock's performance over the past week and month has been negative, with declines of 2.38% and 3.29%, respectively. The company has a high debt-to-equity ratio of 4.47 times, which raises concerns about its long-term fundamental strength, despite its attractive valuation based on ROCE of 10 and trading at a discount compared to peers.
In the broader market context, Lykis Ltd has underperformed significantly over the past year, with a return of -20.52% compared to the BSE500's decline of only -3.20%. This stark contrast highlights the stock's struggles relative to the market. While the stock has outperformed its sector today, the overall negative sentiment surrounding its high debt levels and declining profits, including a 31% drop in net sales and a substantial fall in PAT, suggests that investors remain cautious. The rising investor participation, indicated by a 72.16% increase in delivery volume, may provide some support, but the company's weak fundamentals continue to overshadow its recent price movements.