Why is Sagar Cements falling/rising?

As of 03-Jul, Sagar Cements Ltd is experiencing a rise in its stock price, currently at Rs 251.00, reflecting an increase of Rs 3.3 or 1.33%. The stock has shown strong performance recently, outperforming its sector by 1.77% today and achieving a consecutive gain over the last three days with a total return of 5.2%. Additionally, Sagar Cements has outperformed the benchmark Sensex over the past week and month, with returns of +5.95% and +10.52%, respectively. However, the company faces significant challenges, including weak long-term fundamental strength indicated by a -196.59% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 5.68 times, which raises concerns about its ability to service debt.
Broader Market Context: The stock's recent upward movement contrasts with the broader market, as the Sensex has declined by 0.62% over the past week. Despite the positive short-term performance, the stock has generated a negative return of -1.38% over the past year, while its profits have decreased significantly. The high proportion of pledged promoter shares, now at 80.8%, adds to the risk, particularly in a falling market, which could exert downward pressure on the stock price. Overall, while Sagar Cements has shown short-term gains, the underlying financial weaknesses and market conditions present a mixed outlook for investors.