Why is Atul Auto falling/rising?

As of 04-Sep, Atul Auto Ltd's stock price is rising, currently at 513.25, reflecting an increase of 76.65 or 17.56%. The stock has shown strong performance today, outperforming its sector by 17.27% and gaining 17.62% over the last two days. It opened with a gain of 2.84% and reached an intraday high of Rs 521. Despite this positive movement, the stock has a mixed performance over the longer term, with a year-to-date decline of 11.67% and a one-year drop of 28.22%. While the company's profits have increased by 20.3%, the stock's valuation remains attractive compared to its peers, trading at a discount. However, the company faces challenges, including weak long-term fundamental strength and low profitability, as indicated by its poor EBIT to Interest ratio and low Return on Equity.
In the broader market context, Atul Auto's short-term return of 19.82% over the past week significantly outpaces the Sensex's modest gain of 0.80%. This indicates that the stock is currently experiencing a favorable momentum relative to the market. However, it is essential to note that the stock has underperformed the market over the past year, with a decline of 28.22% compared to the Sensex's drop of only 1.98%. The disparity in performance suggests that while the stock is gaining traction in the short term, it has struggled to maintain investor confidence over the longer term, as evidenced by the lack of domestic mutual fund investment and the company's recent flat financial results.