Why is IRB Infra.Devl. falling/rising?

As of 17-Nov, IRB Infrastructure Developers Ltd is experiencing a price increase, currently at Rs 44.53, which reflects a rise of 1.62 or 3.78%. The stock has shown positive momentum, gaining 5.15% over the last two days and outperforming its sector by 2.44% today. It opened with a significant gain of 4.54% and reached an intraday high of Rs 45.93, indicating strong short-term performance. However, despite these gains, the stock has a weak long-term fundamental strength, evidenced by a low Return on Capital Employed (ROCE) of 7.97% and a high Debt to EBITDA ratio of 5.12 times. Additionally, the company's recent quarterly results showed a decline in both profit after tax and net sales compared to previous averages, which could temper investor enthusiasm.
In the broader market context, the stock has outperformed the benchmark Sensex in the short term, with a 1-week return of 2.49% compared to the Sensex's 1.69%. However, it has significantly underperformed over the longer term, with a year-to-date decline of 22.18% against the Sensex's gain of 8.72%. The high institutional holdings at 52.98% suggest that knowledgeable investors are backing the stock, but the overall weak long-term growth prospects and recent flat results may raise concerns about sustainability. Thus, while the stock is currently rising, its long-term outlook remains uncertain due to fundamental weaknesses.