Why is Galada Finance falling/rising?

As of 08-Jul, Galada Finance Ltd's stock price is currently at 24.16, reflecting an increase of 0.47 or 1.98%. The stock has been on an upward trend, gaining for the last four days and achieving a remarkable 17.97% return over the past week. It is performing well against its sector, outperforming by 2.03%. Despite a significant annual return of 42.12%, it is important to note that the company's profits have declined by 9% over the past year. The stock's valuation appears attractive with a Price to Book Value of 1.3, and it is trading at a discount compared to its peers. However, the average Return on Equity (ROE) is relatively low at 4.3, indicating some weakness in long-term fundamental strength.
In the broader market context, Galada Finance's short-term performance significantly outpaces the benchmark, with a 17.97% return over the past week compared to a mere 0.02% for the Sensex. This strong performance suggests that investor sentiment is favorable, likely driven by rising participation, as evidenced by a 62.25% increase in delivery volume against the 5-day average. While the stock has shown impressive short-term gains, the declining profits and lower long-term ROE may raise concerns among investors regarding its sustainability. Overall, the stock's recent rise can be attributed to positive short-term momentum and attractive valuation metrics, despite underlying challenges in profitability.