Why is Konark Synth falling/rising?

As of 01-Sep, Konark Synthetic Ltd's stock price is currently at 37.99, reflecting an increase of 0.49 or 1.31%. The stock has shown strong performance recently, with a 4.08% increase over the past week and a remarkable 58.23% rise over the past year, significantly outperforming the Sensex, which has declined by 2.43% during the same period. Despite this positive trend, there are concerns regarding falling investor participation, as evidenced by a 54.59% drop in delivery volume on August 28 compared to the five-day average. The stock is trading above its moving averages across various time frames, indicating a bullish trend, but the significant decline in profits by 89% over the past year raises questions about sustainability.
Broader market context shows that while Konark Synthetic Ltd has outperformed the benchmark Sensex in both the short and long term, the broader market has faced challenges, with the Sensex declining by 1.56% over the past week. This contrast highlights the stock's resilience amidst a generally unfavorable market environment. The company's attractive valuation, trading at a discount compared to peers, and consistent returns over the last three years further support its positive outlook, despite the recent drop in profits and liquidity concerns. Overall, the stock's recent rise can be attributed to its strong historical performance and favorable valuation, even as it navigates challenges in investor participation and profitability.