Why is MIRC Electronics falling/rising?

As of 09-Jul, MIRC Electronics Ltd is currently priced at 14.29, reflecting an increase of 0.22 or 1.56%. The stock has outperformed its sector today by 0.97%, although it is trading higher than its 5-day moving averages but lower than its 20-day, 50-day, 100-day, and 200-day moving averages. Despite this positive movement, the stock has shown a negative trend over the past month, with a decline of 1.31%, and a significant year-to-date drop of 40.46%. The company is facing challenges such as operating losses and a weak long-term fundamental strength, with net sales declining by 37.85% in the latest six months. Additionally, 34.51% of promoter shares are pledged, which may exert further downward pressure on the stock in a falling market.
In the broader market context, MIRC Electronics has outperformed the Sensex in the short term, with a 1-week return of 0.42% compared to the benchmark's 0.15%. However, the stock has underperformed significantly over longer periods, including a 32.94% decline over the past year, while the Sensex has gained 3.96%. This underperformance, coupled with the company's weak financial indicators such as a negative EBIT to interest ratio and poor return on capital employed, suggests that while there may be short-term gains, the long-term outlook remains challenging, contributing to investor caution.