Why is Dwarikesh Sugar falling/rising?

As of 21-Aug, Dwarikesh Sugar Industries Ltd is experiencing a slight increase in its stock price, currently at 41.40, reflecting a change of 0.15 or 0.36% upward. The stock has shown a positive trend recently, gaining 7.12% over the past week, outperforming the sector by 0.44%. However, despite this recent uptick, the stock has faced significant challenges, with a year-to-date decline of 26.15% and a staggering 43.58% drop over the past year. The company's return on capital employed (ROCE) stands at a low 2.2, indicating a very attractive valuation, yet its profits have decreased by 28.7% in the same timeframe, which raises concerns about its long-term growth potential. Additionally, the stock's performance has been hindered by a consistent underperformance against benchmarks over the last three years.
In the broader market context, Dwarikesh Sugar's recent short-term performance of +7.12% over the past week contrasts sharply with the Sensex, which has only increased by 1.74% in the same period. This suggests that while the stock is gaining traction in the short term, it still faces significant long-term challenges, as evidenced by its negative returns compared to the benchmark over longer periods. The lack of domestic mutual fund investment, which stands at 0%, may indicate a lack of confidence in the stock's future prospects, further complicating its market position.