Why is Spectrum Foods falling/rising?

As of 25-Jun, Spectrum Foods Ltd is experiencing a price increase, currently at 25.64, with a change of 0.48, representing a rise of 1.91%. The stock has shown strong performance recently, gaining 11.48% over the last two days and outperforming its sector by 0.97%. However, despite this short-term gain, the stock has a mixed performance when viewed over longer periods, with a decline of 4.29% over the past month and a year-to-date drop of 11.16%. The company faces significant challenges, including operating losses and a high debt-to-equity ratio of 3.03 times, which contribute to its weak long-term fundamental strength. Additionally, the company's profits have fallen dramatically, with a reported PAT of Rs -4.21 crore, indicating a substantial decline compared to previous quarters.
In the broader market context, the stock's recent short-term performance of +10.28% over the past week significantly outpaces the Sensex, which has only risen by 1.61% in the same timeframe. However, the longer-term outlook remains concerning, as the stock has consistently underperformed against the benchmark over the last three years, with a return of -2.81% compared to the Sensex's +6.02% over the past year. This underperformance, combined with the company's financial struggles, suggests that while there may be short-term gains, the overall market sentiment regarding Spectrum Foods remains cautious.