Why is Sadhana Nitro falling/rising?

As of 14-Jul, Sadhana Nitro Chem Ltd's stock price is currently at 7.33, reflecting an increase of 0.34 or 4.86%. The stock has shown a positive trend recently, gaining for three consecutive days and achieving a total return of 15.43% during this period. Despite this short-term gain, the stock has significantly underperformed over longer periods, with a one-month return of -53.72% and a year-to-date decline of -81.83%. The company's recent financial results indicate a growth in net profit of 58.91%, which is a positive sign; however, the stock's long-term fundamentals remain weak, as evidenced by a low average return on capital employed (ROCE) of 5.37% and a high debt-to-EBITDA ratio of 5.35 times. Additionally, the increasing proportion of pledged promoter shares, now at 52.67%, adds to the downward pressure on the stock.
In the broader market context, Sadhana Nitro's recent performance has outpaced the benchmark, with a 4.27% increase over the past week compared to a -1.42% decline in the Sensex. However, the stock's long-term performance remains concerning, as it has consistently underperformed against the benchmark over the last three years, with a staggering -88.74% return in the past year. This underperformance, coupled with the weak long-term growth indicators and high levels of pledged shares, suggests that while there may be short-term gains, the overall outlook for Sadhana Nitro Chem Ltd remains challenging in the context of broader market trends.