Why is Sutlej Textiles falling/rising?

As of 08-Jul, Sutlej Textiles and Industries Ltd is experiencing a price increase, currently at Rs 45.00, reflecting a rise of 1.56 (3.59%). The stock has shown strong performance recently, with a consecutive gain over the last two days, resulting in a total return of 6.38%. It has outperformed its sector by 1.76% today and has a higher price than its 5-day, 20-day, 50-day, and 100-day moving averages, although it remains below its 200-day moving average. Despite these positive short-term movements, the company faces significant challenges, including a -199.23% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 8.68 times, indicating a weak long-term fundamental strength. Additionally, the stock has underperformed against the benchmark over the last three years, with a return of -28.32% in the past year.
In the broader market context, Sutlej Textiles has outperformed the Sensex in the short term, with a 1-week return of +4.90% compared to the benchmark's +0.02%. However, the stock's year-to-date performance is concerning, showing a decline of -32.79% while the Sensex has gained 7.13%. The lack of investment from domestic mutual funds, holding only 0% of the company, suggests a lack of confidence in its future prospects, which may contribute to its overall underperformance. Despite the recent price increase, the stock remains risky due to negative operating profits and low profitability per unit of shareholders' funds, indicating that investors should approach with caution.