Why is Pankaj Polymers falling/rising?

As of 26-Jun, Pankaj Polymers Ltd is experiencing a price increase, currently trading at Rs 19.60, which reflects a rise of 0.93 or 4.98%. The stock has shown strong performance recently, gaining 10.17% over the last two days and outperforming its sector by 4.91% today. It is also close to its 52-week high, just 1.02% away from Rs 19.8. Over the past year, the stock has generated impressive returns of 119.24%, significantly outperforming the BSE 500 index in each of the last three annual periods. However, despite these positive indicators, the company faces challenges such as operating losses and a weak long-term fundamental strength, with a negative EBIT to interest ratio and flat results reported in March 2025.
In the broader market context, Pankaj Polymers has outperformed the benchmark Sensex, which has only increased by 2.94% over the past week, while the stock has surged by 20.39% in the same period. This significant outperformance highlights investor confidence in the stock despite its underlying financial challenges. The rising investor participation, indicated by a 30.08% increase in delivery volume, suggests a growing interest in the stock, further contributing to its upward price movement. However, the company's weak ability to service its debt and negative EBITDA present risks that could impact future performance.