Why is Sutlej Textiles falling/rising?

As of 14-Aug, Sutlej Textiles and Industries Ltd is experiencing a price increase, currently at Rs 38.55, which reflects a rise of 2.35 or 6.49%. The stock has shown a positive performance today, outperforming its sector by 7.42% and achieving a consecutive gain over the last two days with a total return of 7.56%. However, despite this short-term gain, the stock has faced significant challenges, with a year-to-date decline of 42.42% and a one-year return of -41.47%. The company is grappling with operational losses and a high Debt to EBITDA ratio of 8.68 times, indicating weak long-term fundamental strength. Additionally, the recent quarterly results showed a substantial drop in profit after tax, further contributing to the stock's volatility.
In the broader market context, Sutlej Textiles has outperformed the Sensex in the short term, with a 1-week return of 1.66% compared to a slight decline of 0.03% for the benchmark. However, the stock's long-term performance remains concerning, as it has underperformed the BSE500 over the past three years and one year. The lack of domestic mutual fund investment, holding only 0% of the company, suggests a lack of confidence in its future prospects. Overall, while the stock is rising in the short term, the underlying financial issues and poor long-term performance indicate a precarious situation for investors.