Why is Srestha Finvest falling/rising?

As of 11-Jun, Srestha Finvest Ltd's stock price is currently at 0.50, reflecting an increase of 0.05 or 11.11%. The stock has outperformed its sector today by 11.69%, although it is trading higher than its 5-day and 20-day moving averages but lower than its 50-day, 100-day, and 200-day moving averages. Despite this short-term gain, the company faces significant challenges, including operating losses and a weak long-term fundamental strength, as indicated by a staggering annual decline in operating profit of -299.54%. Additionally, the company reported a negative profit after tax of Rs -26.65 crore, which has fallen dramatically compared to previous quarters, and a net sales decline of -27.93% over nine months. The stock's performance is further hindered by a negative EBITDA and a substantial drop in investor participation, with delivery volume decreasing by 32.37% against the 5-day average.
In the broader market context, Srestha Finvest's 1-week return of +11.11% significantly outpaces the Sensex's return of +1.87%, indicating a strong short-term performance relative to the benchmark. However, the stock's year-to-date performance remains concerning, with a decline of -39.02%, contrasting sharply with the Sensex's gain of +5.60%. This disparity highlights the stock's volatility and the risks associated with its current valuation, especially given the negative trends in profitability and sales. Overall, while the stock has seen a recent uptick, the underlying financial issues and market conditions suggest caution for potential investors.