Why is Dreamfolks Servi falling/rising?

As of 11-Aug, Dreamfolks Services Ltd is experiencing a price increase, currently at Rs 137.05, reflecting a rise of 6.5 or 4.98%. The stock has shown a positive trend recently, gaining 8.13% over the last two days and outperforming its sector by 5.03% today. Despite this short-term gain, the stock has had a challenging year, with a year-to-date decline of 64.98% and a one-year return of -70.53%. However, the company demonstrates strong fundamentals, including a high return on equity (ROE) of 32.41% and a low debt-to-equity ratio, which contribute to its attractive valuation. The recent performance is also supported by impressive growth in net sales and operating profit, indicating healthy long-term prospects.
In the broader market context, the stock's short-term performance contrasts sharply with the benchmark Sensex, which has declined by 0.51% over the past week. While Dreamfolks has outperformed the benchmark in the short term, its long-term performance remains significantly behind, as evidenced by its substantial year-to-date and one-year losses compared to the Sensex's modest gains. The falling investor participation, as indicated by a dramatic drop in delivery volume, suggests caution among investors despite the recent price rise. Overall, while the stock is currently rising, its long-term outlook remains uncertain amidst significant past declines.