Why is ARC Finance falling/rising?

As of 17-Jul, ARC Finance Ltd's stock price is currently at 0.97, reflecting an increase of 0.01 or 1.04%. The stock has shown a positive trend recently, gaining for the last two days with a total return of 2.11%. Despite this short-term gain, the stock has underperformed over the past month with a decline of 15.65% and a year-to-date drop of 29.20%. The company has a low return on equity of 4.1 and is trading at a discount compared to its peers, with a price-to-book value of 0.9. However, it is important to note that the company has reported significant operating losses, with a PAT of Rs -3.40 crore, indicating weak long-term fundamental strength.
In the broader market context, ARC Finance's recent performance has outpaced the Sensex, which has declined by 1.12% over the past week. The stock's liquidity appears sufficient for trading, with a delivery volume increase of 15.83% compared to the five-day average. While the stock has generated a negative return of -18.32% over the past year, its profits have surged by 377%, suggesting a potential for recovery despite the current challenges. Overall, the stock's recent rise can be attributed to short-term investor interest and improved trading volume, while longer-term concerns regarding profitability and operational losses continue to weigh on its performance.