Why is Yarn Syndicate falling/rising?

As of 25-Jul, Yarn Syndicate Ltd's stock price is currently at Rs 23.62, reflecting an increase of Rs 1.12 or 4.98%. The stock has shown a strong performance recently, gaining 20.14% over the past week and 31.59% over the past month, despite a significant decline of 53.69% over the last year. Today's trading saw the stock open lower at a loss of 2.18% but managed to reach an intraday high of Rs 23.62. Positive factors contributing to the stock's rise include impressive quarterly net sales growth of 736.6% and a higher profit after tax, indicating improved financial performance. However, concerns about long-term fundamental strength persist due to a low return on capital employed and a high debt to EBITDA ratio, which may weigh on investor sentiment.
In the broader market context, Yarn Syndicate's recent short-term performance has significantly outpaced the benchmark Sensex, which has seen a decline of 0.36% over the past week. While the stock has been gaining momentum, it still faces challenges as it has underperformed the market over the past year. The overall market has generated negative returns of -0.19%, contrasting sharply with Yarn Syndicate's steep decline. Despite the recent positive momentum and rising investor participation, the stock's long-term outlook remains uncertain due to its weak fundamentals and substantial past losses.