Why is Sadhana Nitro falling/rising?

As of 22-Jul, Sadhana Nitro Chem Ltd's stock price is currently at 7.70, reflecting an increase of 0.15 or 1.99%. The stock has shown a positive trend recently, gaining for the last two days with a total return of 3.91%. However, despite this short-term gain, the stock has significantly underperformed over the longer term, with a staggering decline of 87.72% over the past year. The company reported a growth in net profit of 58.91% and has strong operating profit metrics, which could be contributing to the recent uptick in price. Nevertheless, the stock's long-term fundamentals are weak, indicated by a low average return on capital employed and a high debt to EBITDA ratio, which raises concerns about its ability to sustain growth.
In the broader market context, Sadhana Nitro has outperformed the Sensex by 3.22% over the past week, while the benchmark has seen a slight decline of 0.47%. However, the stock's long-term performance remains concerning, as it has consistently underperformed against the benchmark over the last three years. The high percentage of pledged promoter shares, which has increased recently, adds further pressure on the stock, particularly in a falling market. Overall, while there are short-term positive movements, the long-term outlook remains bleak, which could influence investor sentiment and trading behavior.