Why is Coffee Day Enter falling/rising?

As of 24-Jun, Coffee Day Enterprises Ltd is experiencing a price increase, currently at 37.00, which reflects a rise of 0.52 or 1.43%. The stock has shown strong performance recently, gaining 13.5% over the last three days and outperforming its sector by 0.4% today. Additionally, it has outperformed the benchmark Sensex significantly over the past week and month, with returns of +10.28% and +9.92%, respectively. However, despite these short-term gains, the stock has a negative return of -35.09% over the past year, indicating underlying challenges. Factors contributing to the recent rise include a very attractive valuation with a low enterprise value to capital employed ratio and increased investor participation, as evidenced by a substantial rise in delivery volume.
In the broader market context, while Coffee Day Enterprises has outperformed the Sensex in the short term, it has underperformed over the last year, where the benchmark has returned +6.10%. The company's long-term fundamentals are weak, with a significant decline in profits and a negative return on equity, which raises concerns about its sustainability. The high percentage of pledged promoter shares could also exert downward pressure in a falling market. Therefore, while the stock is currently rising, the long-term outlook remains uncertain due to these fundamental weaknesses and its historical underperformance against the market.