Why is Sampre Nutrition falling/rising?

As of 02-Jul, Sampre Nutritions Ltd is experiencing a price increase, currently at 35.81, reflecting a change of 0.7 or 1.99% upward. The stock has shown strong performance recently, gaining 49.46% over the last 15 days and outperforming its sector by 1.71% today. However, despite these short-term gains, the company has significant underlying issues, including operating losses and a high Debt to EBITDA ratio of 5.01 times, which indicates a low ability to service debt. The company has also reported negative financial results, with a PAT of Rs -7.35 crore, marking a drastic decline compared to previous quarters. This combination of short-term gains and long-term weaknesses suggests a precarious position for the stock.
In the broader market context, Sampre Nutritions Ltd has outperformed the Sensex over the past week, with a return of +10.32% compared to the benchmark's +0.79%. However, the stock has significantly underperformed over the longer term, with a year-to-date return of -43.78% against the Sensex's +6.75%. This stark contrast highlights the stock's volatility and the risks associated with its current valuation, especially given its negative EBITDA and declining profitability. Overall, while the stock is rising in the short term, the fundamental weaknesses and poor long-term performance raise concerns about its sustainability.