Why is Aarey Drugs falling/rising?

As of 25-Jun, Aarey Drugs & Pharmaceuticals Ltd is experiencing a price increase, currently at Rs 64.65, reflecting a rise of 2.25 (3.61%). The stock has shown strong performance recently, gaining 18.62% over the last four days and outperforming its sector by 2.38% today. It is trading above all its moving averages, indicating positive momentum. Despite a significant return of 35.99% over the past year, the company has faced challenges, including a decline in profits by 21.3%. The stock is trading at a discount compared to its peers, which may attract investors, but the company’s operating losses and weak long-term fundamentals raise concerns about its profitability and ability to service debt.
In the broader market context, Aarey Drugs has outperformed the benchmark Sensex significantly, with a 1-week return of 14.95% compared to the Sensex's 1.61%. This trend of strong performance is evident over multiple periods, including a 3-year return of 99.85% against the benchmark's 56.95%. While the stock's recent gains are encouraging, the underlying issues such as operating losses and declining sales could impact investor sentiment moving forward. Overall, the stock's current rise is supported by short-term performance metrics, but long-term concerns remain a critical factor for potential investors.