Why is Dharani Finance falling/rising?

As of 31-Jul, Dharani Finance Ltd is currently priced at 9.45, reflecting a slight increase of 0.02 (0.21%). The stock has shown a trend reversal, gaining after five consecutive days of decline. It has outperformed its sector by 0.75% today, with a notable increase in delivery volume, which rose by 143.77% against the five-day average. Despite this positive movement, the stock is trading below its moving averages across various time frames, indicating potential weakness. Over the past year, the stock has generated a return of 19.17%, significantly outperforming the broader market, which has seen negative returns of -3.20%. However, the stock's long-term fundamentals are weak, with an average Return on Equity (ROE) of 2.24% and modest growth in net sales and operating profit.
In the broader market context, while the stock has outperformed the Sensex and the BSE500 over the past year, it has faced challenges in the short term, with a 10% decline over the past week compared to a 1.22% drop in the Sensex. This indicates that, despite recent gains, the stock's overall performance has been under pressure relative to the market. The stock's valuation remains attractive with a Price to Book Value of 0.5, but concerns about its long-term growth potential and weak fundamentals may be contributing to investor caution. Overall, while there are signs of recovery in the short term, the underlying issues may continue to affect investor sentiment.