Why is BITS falling/rising?

As of 02-Jul, BITS Ltd's stock price is currently at 11.32, reflecting an increase of 0.22 or 1.98%. The stock has shown a strong performance recently, gaining 14.46% over the last seven days and outperforming its sector by 1.89% today. Additionally, the stock has generated an impressive return of 215.32% over the past year, significantly higher than the market's average return of 3.11%. However, despite these short-term gains, the company faces challenges such as weak long-term fundamental strength, evidenced by a low Return on Equity (ROE) of 3.81% and a concerning EBIT to Interest ratio of -0.03. This indicates potential difficulties in servicing its debt, which may weigh on investor sentiment.
In the broader market context, BITS Ltd's short-term performance of +10.12% over the past week contrasts sharply with the Sensex's modest gain of +0.79% during the same period. While the stock has been buoyed by rising investor participation and liquidity, its long-term growth prospects remain questionable due to poor sales and profit growth rates. The stock is trading at a premium compared to its peers, which could deter some investors despite its recent gains. Overall, while BITS Ltd is experiencing a rise in its stock price, underlying fundamental weaknesses may pose risks for sustained performance.