Why is Garnet Construct falling/rising?

As of 08-Jul, Garnet Construction Ltd is experiencing a price increase, with its current price at Rs 39.91, reflecting a rise of Rs 2.41 or 6.43%. The stock has shown strong performance today, outperforming its sector by 5.32% and achieving consecutive gains for the last 11 days, resulting in a remarkable 40.33% return during this period. Additionally, the stock has outperformed the benchmark Sensex significantly over various time frames, including a 49.14% return over the past year and a staggering 266.82% over the last five years. However, despite this impressive performance, the company faces challenges such as operating losses and a low return on equity, which may raise concerns about its long-term fundamental strength.
In the broader market context, Garnet Construction's short-term return of 28.87% over the past week stands in stark contrast to the Sensex, which has only increased by 0.02% during the same period. This significant outperformance highlights the stock's strong momentum relative to the market. While the stock's recent gains are encouraging, the underlying issues related to profitability and operating losses could temper investor enthusiasm moving forward. Overall, the stock's current rise is driven by strong short-term performance and increased investor participation, despite the presence of fundamental weaknesses.