Why is Garnet Construct falling/rising?

As of 09-Jul, Garnet Construction Ltd's stock is rising, currently priced at Rs 41.00, reflecting an increase of Rs 1.09 or 2.73%. The stock has shown impressive performance, gaining 44.16% over the last 12 days and outperforming its sector by 4.04% today. It opened with a gain of 2.23% and reached an intraday high of Rs 42.9, indicating strong investor interest. The stock has also demonstrated robust returns over various periods, including a 54.14% increase over the past year and a staggering 259.96% over the last five years. However, despite these positive movements, the company faces challenges, such as operating losses and a low return on equity of 8.98%, which may raise concerns about its long-term profitability.
In the broader market context, Garnet Construction's short-term return of 25.38% over the past week significantly outpaces the Sensex's modest gain of 0.15%. This strong performance relative to the benchmark highlights the stock's appeal among investors, particularly in light of its recent consecutive gains. While the stock's valuation appears expensive with a price-to-book ratio of 0.6, its recent price movements suggest that investors are currently optimistic about its potential, despite underlying financial weaknesses. The combination of rising investor participation and consistent outperformance in both short and long-term metrics contributes to the stock's upward trajectory.