Why is Hikal falling/rising?

As of 19-Aug, Hikal Ltd's stock price is currently at Rs 263.00, reflecting an increase of Rs 5.35 or 2.08%. The stock has shown a positive trend recently, gaining for the last two days with a total return of 5.14% during this period. However, despite this short-term gain, the stock has underperformed significantly over the longer term, with a decline of 23.61% over the past month and 32.52% year-to-date. The stock is trading below its moving averages, indicating a potential weakness in its price momentum. Additionally, the delivery volume has decreased by 28.7% compared to the five-day average, suggesting a decline in investor participation. While the stock is trading at a discount compared to its peers, it has also experienced a significant drop in profits, which may contribute to investor caution.
Broader Market Context: In the context of the broader market, Hikal's recent performance contrasts with the Sensex, which has gained 1.76% over the past week. This indicates that while Hikal has seen a short-term rise, it is still lagging behind the benchmark in the longer term, having consistently underperformed over the last three years. The stock's negative returns over the past year and the decline in operating profit further highlight the challenges it faces compared to the overall market performance. The combination of poor long-term growth prospects and recent profit declines suggests that the stock's upward movement may not be sustainable in the face of broader market trends.