Why is Velan Hotels falling/rising?

As of 18-Aug, Velan Hotels Ltd is experiencing a price increase, currently trading at 6.00, which represents a rise of 0.17 or 2.92%. The stock has shown strong performance recently, gaining 13.21% over the last three days and outperforming its sector by 2.87% today. However, despite this short-term gain, the stock has a negative year-to-date return of -21.77% and has underperformed the benchmark Sensex over various periods, including a -4.15% return over the last month. The company faces significant challenges, including a high debt-to-equity ratio of 9.15 times, indicating weak long-term fundamental strength, and a negative EBITDA, which raises concerns about its financial stability.
In the broader market context, while Velan Hotels has outperformed the Sensex in the short term, the benchmark has shown a modest gain of 0.83% over the past week, highlighting a stark contrast in performance. The company's long-term growth prospects appear weak, with stagnant net sales and operating profit growth over the last five years. This combination of short-term gains amidst long-term financial challenges suggests that while the stock may be rising currently, underlying issues could pose risks for future performance.