Why is Bombay Cycle falling/rising?

As of 30-Jun, Bombay Cycle & Motor Agency Ltd is experiencing a price increase, currently at Rs 2,042.95, reflecting a rise of Rs 53.05 or 2.67%. Today's price summary indicates that the stock opened lower, down 2.51%, but reached an intraday high of Rs 2,119.85, showcasing a volatility of 5.47%. Over the past week, the stock has outperformed the sector with a return of 5.31%, and it has shown strong performance over the last month with a 13.43% increase. However, despite these positive movements, the company faces challenges such as weak long-term fundamental strength, evidenced by an average Return on Equity (ROE) of 8.77% and a significant decline in profits over the past year.
In the broader market context, the stock's recent performance has been notably stronger than the benchmark Sensex, which has returned 2.09% over the past week. While the stock has shown resilience in the short term, concerns regarding its long-term growth potential and high valuation relative to peers may temper investor enthusiasm. The company's weak ability to service its debt, highlighted by a poor EBIT to Interest ratio, along with negative results reported in March, could contribute to cautious sentiment among investors despite the current price rise.