Why is Sadhana Nitro falling/rising?

As of 16-Jul, Sadhana Nitro Chem Ltd's stock price is currently at 7.67, reflecting an increase of 0.21 or 2.82%. The stock has shown a strong performance recently, gaining 20.79% over the past week, and has outperformed its sector by 2.97%. Despite this short-term gain, the stock has experienced significant declines over longer periods, with a staggering drop of 88.23% over the past year. The company's recent financial results indicate a growth in net profit of 58.91%, and it has reported its highest operating profit to interest ratio at 3.08 times. However, the stock's long-term fundamentals remain weak, with a low average return on capital employed (ROCE) of 5.37% and a high debt to EBITDA ratio of 5.35 times, which raises concerns about its ability to service debt.
In the broader market context, while Sadhana Nitro's stock has outperformed the Sensex by a notable margin in the short term, the benchmark has shown a modest gain of 1.02% over the past month. The stock's long-term performance has been consistently poor, with a decline of 91.01% over the last three years compared to the Sensex's gain of 53.71%. The increasing proportion of pledged promoter shares, which now stands at 52.67%, adds additional pressure on the stock, particularly in a falling market. Overall, while the recent price increase may reflect short-term investor optimism, the underlying fundamentals and long-term performance suggest caution.