Why is Velan Hotels falling/rising?

As of 23-Sep, Velan Hotels Ltd is experiencing a price increase, currently at 6.09, reflecting a change of 0.29 or 5.0% upward. The stock has shown strong performance recently, gaining 38.41% over the last seven days and outperforming its sector by 6.64% today. Additionally, it has delivered a remarkable 26.61% return over the past week, while its one-month return stands at 15.56%. However, despite these short-term gains, the company faces significant challenges, including a negative book value and weak long-term fundamental strength, as indicated by stagnant net sales and operating profit growth over the past five years. The high debt levels, with a debt-to-equity ratio averaging 0 times, further complicate its financial health.
In the broader market context, while Velan Hotels has outperformed the Sensex in the short term, the stock has consistently underperformed against the benchmark over the last three years, with a year-to-date return of -20.60% compared to the Sensex's 5.07%. This underperformance highlights the risks associated with the stock, particularly given its negative EBITDA and the fact that profits have declined by 0% over the past year. Despite the recent positive momentum, the long-term outlook remains precarious, suggesting that while the stock may be rising in the short term, significant underlying issues could hinder its future performance.