Why is TARC Ltd falling/rising?

As of 14-Jul, TARC Ltd's stock price is currently at 201.30, reflecting an increase of 0.5 (0.25%). The stock has been on an upward trend, gaining 6.51% over the last three days, and has outperformed the benchmark with a 1-week return of +8.23% compared to the Sensex's -1.42%. However, despite these short-term gains, the company faces significant challenges, including operating losses and a high Debt to EBITDA ratio of -1.00 times, indicating a weak ability to service debt. The company has reported negative results for the last seven consecutive quarters, with net sales declining by -47.46% and a PAT of -104.52 cr, which has fallen by -134.3% compared to the previous four-quarter average. This combination of recent performance and ongoing financial struggles suggests that while the stock has seen a short-term rise, the long-term outlook remains concerning.
In the broader market context, TARC Ltd's recent performance contrasts sharply with the benchmark, as the stock has gained significantly in the short term while the Sensex has experienced a decline. Year-to-date, TARC Ltd has returned +13.12%, outperforming the Sensex's +5.27%. However, the stock's long-term performance is less favorable, with a 1-year return of -4.44% compared to the Sensex's +2.15%. This divergence highlights the stock's volatility and the underlying issues that may affect its sustainability despite recent gains.