Why is Guj.Nat.Resour. falling/rising?

As of 01-October, Gujarat Natural Resources Ltd is experiencing a rise in its stock price, currently at Rs 75.70, reflecting an increase of Rs 2.41 or 3.29%. The stock has shown strong performance recently, gaining 15.93% over the last nine consecutive days. It has outperformed its sector by 2.91% today and is trading above all key moving averages. In terms of returns, the stock has delivered an impressive 340.01% over the past year and 288.21% year-to-date, significantly outperforming the Sensex, which has seen a decline of 3.90% over the same period. However, despite these positive short-term movements, the company faces challenges such as weak long-term fundamentals, including a negative Return on Capital Employed (ROCE) and poor growth in operating profit.
In the broader market context, while Gujarat Natural Resources Ltd has outperformed the benchmark Sensex in both the short and long term, with a 1-month return of 16.43% compared to the Sensex's 0.77%, there are underlying concerns that could affect investor sentiment. The company's recent negative financial results, including a significant drop in net sales and profit after tax, raise questions about its long-term viability. Additionally, the lack of investment from domestic mutual funds, which hold 0% of the company, suggests a lack of confidence in its future performance. These factors indicate that while the stock is currently rising, there are significant risks that could impact its sustainability in the market.