Why is 3i Infotech falling/rising?

As of 05-Sep, 3i Infotech Ltd's stock price is currently at 23.30, reflecting an increase of 0.29 or 1.26%. The stock has outperformed its sector today by 2.47%, and its delivery volume has risen by 1.12% against the 5-day average, indicating increased investor participation. Despite this positive movement, the stock has shown a significant decline over the longer term, with a year-to-date return of -16.85% and a one-year return of -30.45%. The company has reported positive results for the last three consecutive quarters, with a substantial growth in profit after tax and attractive valuation metrics, such as a low PEG ratio of 0.1. However, the company also faces challenges, including operating losses and a weak ability to service its debt, which may contribute to investor caution.
In the broader market context, 3i Infotech's short-term performance of +2.64% over the past week contrasts with the Sensex's gain of only +1.13%, indicating a stronger relative performance in the short term. However, the stock has consistently underperformed against the benchmark over the last three years, which may weigh on investor sentiment. The company's weak long-term fundamentals, as evidenced by a low return on equity and negative EBIT to interest ratio, suggest that while there may be short-term gains, the overall outlook remains challenging compared to the broader market trends.