Why is Vaxtex Cotfab falling/rising?

As of 30-Jul, Vaxtex Cotfab Ltd's stock price is currently at Rs 1.21, reflecting an increase of Rs 0.04 or 3.42%. The stock has shown strong performance recently, with a 15.24% increase over the past week and a remarkable 39.08% rise over the last month, significantly outperforming the Sensex, which has declined by 1.45% and 2.59% in the same periods, respectively. Today's price summary indicates that the stock is trading above all key moving averages, suggesting positive momentum. However, despite these gains, the company faces challenges, including operating losses and a weak long-term growth outlook, as evidenced by a significant decline in net sales and operating profit over the past five years. Additionally, a decrease in promoter stake by 1.63% may indicate reduced confidence in the company's future.
Broader Market Context: The broader market context shows that while Vaxtex Cotfab has outperformed the benchmark indices in the short term, the BSE Small Cap index has fallen by 1.88%. This divergence highlights the stock's relative strength amidst a declining market. Despite the positive short-term returns, the company's underlying financial health raises concerns, particularly with a negative EBITDA and a poor ability to service debt. These factors contribute to a complex picture where the stock's recent rise may not be sustainable in the long term, given the fundamental weaknesses that persist.