Why is Nitco falling/rising?

As of 02-Jul, Nitco Ltd's stock price is rising, currently at Rs. 160.75, reflecting an increase of Rs. 8.6 or 5.65%. The stock has recently reached a new 52-week high of Rs. 160.85 and has shown strong performance, gaining 20.96% over the past week and 102.46% over the last year. It has outperformed its sector by 3.85% today and has been on a consecutive gain streak for the last five days. However, despite these positive movements, the company faces significant challenges, including operating losses and a weak long-term fundamental strength, with net sales declining at an annual rate of -7.37% over the past five years. Additionally, 87.75% of promoter shares are pledged, which could exert downward pressure on the stock in adverse market conditions.
In the broader market context, Nitco's short-term return of 20.96% over the past week significantly outpaces the Sensex's return of 0.79% during the same period. While the stock has demonstrated impressive gains, the underlying financial issues, such as a high debt-to-EBITDA ratio and negative EBITDA, raise concerns about its sustainability. The stock's liquidity is adequate, but the high level of pledged shares among promoters adds a layer of risk, particularly in volatile market conditions. Overall, while the stock is currently rising, its long-term outlook remains uncertain due to these fundamental weaknesses.