Why is Dhunseri Tea falling/rising?

As of 12-Aug, Dhunseri Tea & Industries Ltd. is experiencing a price increase, currently at Rs 203.00, reflecting a rise of Rs 3.9 or 1.96%. The stock has shown a strong performance today, outperforming its sector by 3.01% and marking its second consecutive day of gains with a total increase of 7.69% over this period. Positive financial results reported on June 25, including a significant growth in profit before tax and net sales, have likely contributed to this upward movement. However, the company faces challenges, such as a weak long-term fundamental strength indicated by a negative CAGR growth in operating profits over the last five years and a poor ability to service its debt, which may temper investor enthusiasm.
In the broader market context, the stock's short-term return of +4.56% over the past week contrasts sharply with the Sensex, which has declined by 0.59% in the same timeframe. Despite this recent outperformance, the stock has consistently underperformed against the benchmark over the longer term, with a year-to-date return of -23.11% compared to the Sensex's +2.68%. This persistent underperformance, alongside the company's weak profitability metrics, suggests that while there may be short-term gains, the long-term outlook remains uncertain and potentially risky for investors.