Why is Aarey Drugs falling/rising?

As of 24-Jun, Aarey Drugs & Pharmaceuticals Ltd is experiencing a price increase, currently at Rs 62.40, which reflects a rise of Rs 2.95 or 4.96%. The stock has shown strong performance recently, gaining 14.5% over the last three days and outperforming its sector by 5.27%. Additionally, it has demonstrated impressive returns over various periods, including a 31.87% increase over the past year and a staggering 215.95% over the last five years. Despite a decline in profits by 21.3% over the past year, the stock is trading at a discount compared to its peers, which may attract investors. However, the company faces challenges, such as operating losses and a weak ability to service its debt, which could temper enthusiasm.
In the broader market context, Aarey Drugs has significantly outperformed the benchmark Sensex, which has only risen by 0.58% over the past week and 5.01% year-to-date. This strong relative performance indicates that investor sentiment towards Aarey Drugs is positive, particularly given its recent gains and liquidity improvements. The stock's ability to maintain higher trading levels than its moving averages further supports its upward trajectory, despite the underlying financial challenges. Overall, while the stock is rising, potential investors should be cautious of the company's long-term fundamental weaknesses.