Why is Sutlej Textiles falling/rising?

As of 02-Sep, Sutlej Textiles and Industries Ltd is experiencing a price increase, currently at Rs 38.80, reflecting a rise of 1.2 (3.19%). Today, the stock has outperformed its sector by 2.2% and has shown a trend reversal after two consecutive days of decline, opening with a gain of 5.05% and reaching an intraday high of Rs 39.5. However, despite this short-term positive movement, the stock has underperformed significantly over longer periods, with a year-to-date decline of 42.05% and a one-year drop of 45.60%. The company is facing challenges such as operating losses, a high Debt to EBITDA ratio of 8.68 times, and a low Return on Equity of 3.91%, indicating weak long-term fundamental strength. Additionally, the negative results reported in June, including a PAT of Rs -30.10 crore, have contributed to a perception of risk among investors.
In the broader market context, the stock's short-term performance of +3.91% over the past week contrasts sharply with the Sensex, which has declined by 0.78% during the same period. However, the stock's long-term performance remains concerning, as it has consistently underperformed against the benchmark over the last three years. The lack of domestic mutual fund investment, which stands at 0%, suggests a lack of confidence in the company's prospects, further complicating its market position. Overall, while there is a temporary rise in the stock price, the underlying financial issues and historical performance indicate a challenging environment for Sutlej Textiles.