Why is Fineotex Chem falling/rising?

As of 17-Jul, Fineotex Chemical Ltd's stock price is currently at Rs 282.90, reflecting an increase of Rs 3.4, or 1.22%. The stock has shown positive momentum recently, gaining 4.78% over the last three days and outperforming its sector by 0.97% today. It reached an intraday high of Rs 285.45, and its delivery volume has significantly increased, indicating rising investor participation. However, despite these short-term gains, the stock has underperformed over the past year, with a decline of 24.86% compared to the market's modest gain of 1.91%. The company's high management efficiency, evidenced by a return on equity (ROE) of 21.66%, contrasts with its recent negative financial results, including a 32.5% drop in profit after tax and the lowest net sales figures.
In the broader market context, Fineotex Chemical Ltd has outperformed the benchmark Sensex over the past week and month, with returns of 2.61% and 4.60%, respectively, while the Sensex has declined by 1.12% and gained only 0.83%. However, the stock's year-to-date performance remains concerning, with a significant drop of 14.60% against the benchmark's 5.27% increase. The stock's valuation appears expensive, with a price-to-book ratio of 4.4, and it has generated negative returns over the past year, indicating that while there may be short-term gains, the long-term outlook remains challenging due to declining profits and overall underperformance relative to the market.