Why is NACL Industries falling/rising?

As of 22-Jul, NACL Industries Ltd is experiencing a price increase, currently at Rs 319.15, which reflects a rise of 3.25 or 1.03%. The stock has shown strong performance recently, gaining 28.85% over the last six days and hitting a new 52-week high of Rs 331.45 today. Over the past year, NACL Industries has delivered an impressive return of 391.91%, significantly outperforming the BSE500 index. However, despite these positive short-term movements, the company faces challenges such as operating losses and a high Debt to EBITDA ratio of 12.51 times, indicating weak long-term fundamental strength. Additionally, the company has reported negative results for the last two consecutive quarters, with significant declines in net sales and profits, which may raise concerns among investors.
In the broader market context, NACL Industries has outperformed the Sensex, which has seen a slight decline of 0.47% over the past week, while NACL's stock has surged by 22.73%. This stark contrast highlights the stock's strong momentum relative to the market. Despite the positive short-term performance, the lack of domestic mutual fund investment, which stands at 0%, suggests that institutional investors may have reservations about the company's long-term viability. Overall, while the stock is currently rising, the underlying financial challenges could pose risks for sustained growth.