Why is Bonlon Industrie falling/rising?

As of 04-Jul, Bonlon Industries Ltd is experiencing a price increase, currently at Rs 39.49, which reflects a rise of Rs 1.32 or 3.46%. The stock has shown strong performance recently, gaining 15.47% over the last four days and outperforming its sector by 3.66% today. Despite opening lower with a loss of 3.07%, it reached an intraday high of Rs 40.06, indicating volatility within the trading day. The stock has also been trading above its moving averages across various time frames, and there has been a significant increase in investor participation, with delivery volume rising by 111.35% against the five-day average. However, the company faces challenges, including weak long-term fundamental strength, as indicated by a low Return on Capital Employed (ROCE) of 2.43% and a high Debt to EBITDA ratio of 5.56 times, which may affect investor sentiment in the long run.
In the broader market context, Bonlon Industries has outperformed the Sensex in the short term, with a one-week return of +13.48% compared to the benchmark's -0.74%. While the stock has shown positive short-term momentum, its long-term growth prospects appear limited, as evidenced by a modest annual net sales growth rate of 10.49% over the past five years. This juxtaposition of strong short-term performance against weak long-term fundamentals may create a mixed outlook for investors, who might be encouraged by recent gains but wary of the underlying financial health of the company.