Why is Satchmo Holdings falling/rising?

As of 27-Jun, Satchmo Holdings Ltd is currently priced at 4.44, reflecting an increase of 0.16 or 3.74%. The stock has shown strong performance recently, outperforming its sector by 4.87% today. It is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating positive momentum. Over the past week, the stock has risen by 12.69%, and over the past month, it has increased by 39.18%. However, despite this upward movement, the company faces significant challenges, including a negative book value and a weak long-term fundamental strength, as evidenced by a decline in net sales and operating profit over the last five years. The company has also reported negative results for the last five consecutive quarters, which raises concerns about its financial health.
In the broader market context, Satchmo Holdings has outperformed the Sensex, which has only increased by 2.00% over the past week and 3.07% over the past month. While the stock has generated a return of 11.84% over the past year, its profits have significantly declined, raising red flags for investors. The high debt levels and negative EBITDA further contribute to the stock's risky profile, despite the recent price increase. Overall, while the stock is experiencing a rise in price, the underlying financial issues and negative growth trends suggest caution for potential investors.