Why is Atul Auto falling/rising?

As of 05-Sep, Atul Auto Ltd's stock price is currently at Rs 538.85, reflecting an increase of Rs 25.6 or 4.99%. The stock has demonstrated strong performance recently, gaining 23.49% over the last three days and outperforming its sector by 3.99% today. Despite opening lower with a loss of 2.57%, it reached an intraday high of Rs 554.2, indicating significant volatility with a wide trading range of Rs 61.5. The stock's recent upward movement is supported by a notable increase in delivery volume, which surged by 2947.44% against the five-day average, suggesting rising investor interest. However, the company faces challenges, including weak long-term fundamental strength and a declining return on equity, which may temper investor enthusiasm.
Broader market context shows that Atul Auto's short-term performance has significantly outpaced the benchmark, with a one-week return of 25.23% compared to the Sensex's 1.13%. While the stock has underperformed over the past year with a return of -23.44% against the market's -1.81%, its recent gains indicate a potential shift in investor sentiment. The stock is currently trading at a discount compared to its peers, which may attract buyers despite its historical underperformance and weak profitability metrics. Overall, while the stock's recent rise can be attributed to increased trading activity and investor participation, underlying financial weaknesses remain a concern for long-term growth.