Why is Yarn Syndicate falling/rising?

As of 26-Jun, Yarn Syndicate Ltd's stock price is currently at 18.83, reflecting an increase of 0.88 or 4.9%. The stock has shown strong performance recently, outperforming its sector by 4.99% today. Over the past week, it has gained 10.96%, while its one-month return stands at 6.14%. However, despite these short-term gains, the stock has significantly underperformed over the longer term, with a year-to-date decline of 36.28% and a one-year drop of 52.84%. Positive factors contributing to the recent price movement include a higher profit after tax of Rs 0.63 crore and record net sales of Rs 32.67 crore for the latest quarter. However, the stock's long-term fundamentals are weak, highlighted by a low average return on capital employed (ROCE) of 1.73% and a high debt-to-EBITDA ratio, which raises concerns about its ability to service debt.
In the broader market context, Yarn Syndicate's recent performance contrasts sharply with the benchmark, as the Sensex has only increased by 2.94% over the past week. While the stock has shown a positive short-term return, its long-term performance remains concerning, particularly given its substantial decline compared to the market's overall growth of 7.19% year-to-date. The stock's liquidity appears adequate for trading, but a significant drop in delivery volume suggests falling investor participation, which could impact future price movements. Overall, while there are some positive indicators in the short term, the long-term outlook remains challenging, contributing to a mixed sentiment around the stock.