Why is Bombay Cycle falling/rising?

As of 28-Jul, Bombay Cycle & Motor Agency Ltd's stock price is currently at Rs 2,030.00, reflecting an increase of Rs 54.5, or 2.76%. Today's price summary indicates that the stock has outperformed its sector by 3.7% and has experienced a trend reversal after two consecutive days of decline. Despite opening with a loss of 3.56%, the stock reached an intraday high of Rs 2,135.85, showcasing significant volatility with a wide trading range of Rs 230.75. Over the past year, the stock has generated a return of 6.84%, outperforming the BSE500 index, particularly in the long term with a 227.71% return over three years. However, the stock faces challenges due to weak long-term fundamentals, including a low return on equity of 8.77% and a significant decline in profits, which may temper investor enthusiasm.
In the broader market context, the stock's short-term performance of 2.01% over the past week contrasts sharply with the Sensex, which has declined by 1.59% during the same period. This relative strength suggests that investor sentiment towards Bombay Cycle remains more positive compared to the overall market. However, the stock's high volatility and declining delivery volume indicate some uncertainty among investors. While the stock has shown resilience in the short term, its long-term growth prospects are hindered by poor financial metrics, including a weak ability to service debt and a high price-to-book value ratio, which could impact future performance.