Why is Madhusudan Inds. falling/rising?

As of 24-Jul, Madhusudan Industries Ltd is experiencing a price increase, currently at 45.32, reflecting a change of 0.48 or 1.07% upward. The stock has shown strong performance in the short term, with a 1-week return of +15.58% and a 1-month return of +14.73%, significantly outperforming the Sensex, which has seen a slight decline of -0.09% over the same week. However, the stock's long-term fundamentals are concerning, with a weak 1.09% CAGR growth in operating profits over the last five years and a negative EBIT to interest ratio of -0.37, indicating challenges in servicing debt. Additionally, the company has reported a negative EBITDA and a significant reliance on non-operating income, which raises concerns about its profitability and sustainability.
In the broader market context, while Madhusudan Industries has outperformed the sector today, it has underperformed the market over the past year, with a return of -23.90% compared to the BSE500's positive return of 0.99%. The stock's recent rise appears to be a short-term reaction rather than a reflection of strong underlying fundamentals, as indicated by the falling investor participation and a significant drop in delivery volume. The stock's liquidity remains adequate for trading, but the overall weak long-term outlook suggests caution for investors.