Why is JSW Energy falling/rising?

As of 26-Jun, JSW Energy Ltd's stock price is currently at Rs 517.10, reflecting an increase of Rs 9.5 or 1.87%. The stock has shown a positive trend recently, gaining 7.58% over the past week and outperforming its sector by 0.4% today. It has experienced consecutive gains for the last five days, reaching an intraday high of Rs 520. However, despite these short-term gains, the stock has a weak long-term fundamental strength, evidenced by a low Return on Capital Employed (ROCE) of 7.34% and a high Debt to EBITDA ratio of 4.71 times. Additionally, the company reported negative results in March 2025, with a significant decline in profit before tax and net profit compared to previous quarters, which may contribute to investor caution.
In the broader market context, while the stock has performed well in the short term, it has significantly underperformed the market over the past year, generating a return of -27.40% compared to the BSE 500's return of 4.11%. This stark contrast highlights the challenges JSW Energy faces despite recent positive movements. The stock's liquidity remains adequate, but falling investor participation, with a 21.02% drop in delivery volume against the five-day average, suggests a potential lack of confidence among investors. Overall, while the recent price increase may attract attention, the underlying fundamentals and long-term performance issues present significant concerns.