Why is Nakoda Group falling/rising?

As of 30-Sep, Nakoda Group of Industries Ltd is experiencing a price increase, currently at Rs 34.27, reflecting a rise of 5.0 (17.08%). Today's price summary indicates that the stock has outperformed its sector by 16.94% and has gained after four consecutive days of decline, reaching an intraday high of Rs 34.53. Despite this positive movement, the stock has shown significant underperformance over the longer term, with a year-to-date decline of 24.20% and a three-year drop of 67.93%. The company's weak long-term fundamentals, highlighted by a -183.36% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 9.35 times, contribute to a risky investment profile. Additionally, the stock's negative EBITDA and low return on equity further underscore its challenges.
In the broader market context, Nakoda Group's recent performance contrasts sharply with the benchmark, as it has gained 6.79% over the past week while the Sensex has declined by 2.23%. This short-term outperformance may attract investor interest, especially given the rising delivery volume, which increased by 39.18% against the five-day average. However, the stock's long-term trajectory remains concerning, with consistent underperformance against the benchmark over the last three years, indicating that while there may be short-term gains, the overall outlook for Nakoda Group is still fraught with risks.