Why is Gautam Gems falling/rising?

As of 19-Nov, Gautam Gems Ltd is experiencing a price increase, currently at 4.30, which reflects a change of 0.24 or 5.91% upward. The stock has shown positive momentum, outperforming its sector by 4.83% today and has gained 6.44% over the last two days. Despite a year-to-date decline of 19.17% and a significant underperformance over the past three years, the stock is trading at a discount compared to its peers, with a very attractive valuation indicated by a return on capital employed (ROCE) of 1.4. However, the company has faced challenges, including a 24% drop in profits over the past year and a weak ability to service its debt, which could impact long-term investor confidence.
In the broader market context, Gautam Gems' recent performance contrasts sharply with the benchmark, as it has achieved an 11.11% return over the past week compared to the Sensex's 0.85%. This short-term outperformance may attract more investor interest, especially given the rising delivery volume, which increased by 15.67% against the five-day average. However, the stock's long-term fundamentals remain weak, with a negative compound annual growth rate (CAGR) of -14.96% in operating profits over the last five years and a high percentage of pledged promoter shares, which could exert downward pressure in a falling market.