Why is Godavari Drugs falling/rising?

As of 04-Aug, Godavari Drugs Ltd is experiencing a price increase, currently at Rs 88.00, reflecting a rise of Rs 5.43 or 6.58%. The stock has shown a positive trend today, outperforming its sector by 6.24% and reversing a two-day decline. It reached an intraday high of Rs 88.8, indicating strong trading activity, with a notable increase in delivery volume by 30.09% compared to the five-day average. Despite this short-term gain, the stock has a mixed performance history, with a one-year return of -13.47% and a year-to-date decline of -19.52%. The company's valuation appears attractive with a ROCE of 12.3 and a lower trading price compared to peers, but it has also faced challenges, including a significant profit drop of -22.1% over the past year.
In the broader market context, the stock's recent performance contrasts with the Sensex, which has only increased by 0.16% over the past week. While Godavari Drugs has outperformed the benchmark in the short term, its longer-term performance remains concerning, with underperformance against the BSE500 over the last three years and a high Debt to EBITDA ratio of 3.15 times indicating potential financial strain. The company's weak long-term fundamentals, including a -57.98% growth in PAT over the last six months, suggest that while the stock may be rising in the short term, underlying issues could pose risks for sustained growth.