Why is Shalimar Paints falling/rising?

As of 30-Sep, Shalimar Paints Ltd. is experiencing a price increase, currently at Rs 86.45, reflecting a rise of 3.29 (3.96%). The stock has shown strong performance recently, gaining 12.45% over the last two days and outperforming its sector by 3.7% today. Additionally, the stock has risen by 21.08% over the past month, despite a year-to-date decline of 32.01%. However, the company faces significant challenges, including operating losses and a weak long-term fundamental strength, as indicated by a negative EBIT to interest ratio and a poor debt-equity ratio. The high percentage of pledged promoter shares further adds to the stock's risk profile, contributing to its historical underperformance against benchmarks.
In the broader market context, Shalimar Paints has outperformed the Sensex in the short term, with a 6.66% gain over the past week compared to a decline of 2.23% in the benchmark. Despite this recent uptick, the stock has consistently underperformed over longer periods, with a 36.50% decline over the past year and a 48.72% drop over the last three years. This persistent underperformance, coupled with the company's financial difficulties, suggests that while the stock may be rising in the short term, significant risks remain that could impact its future performance.