Why is Gautam Gems falling/rising?

As of 11-Aug, Gautam Gems Ltd's stock price is currently at 4.49, reflecting an increase of 0.14 or 3.22%. The stock has shown a positive trend today, outperforming its sector by 3.08% and reversing a three-day streak of declines. Despite this short-term gain, the stock has underperformed over the past year, with a significant decline of 43.38%. The company's valuation appears attractive with a low enterprise value to capital employed ratio and a return on capital employed of 1, but it has faced challenges, including a 53% drop in profits over the past year and weak long-term fundamental strength, indicated by a -10.37% CAGR growth in operating profits over the last five years. Additionally, the high percentage of pledged promoter shares (57.93%) could exert downward pressure on the stock in a falling market.
In the broader market context, Gautam Gems has experienced a 2.05% increase over the past week, contrasting with a decline of 0.51% in the Sensex, indicating a relative strength in the short term. However, the stock's year-to-date performance is concerning, with a decline of 15.60% compared to a 3.15% increase in the benchmark index. This discrepancy highlights the stock's ongoing struggles despite today's positive movement, as it continues to lag significantly behind the market over longer periods.